Residents of Kitui County have urged the Parliamentary Committee spearheading the consideration of Sessional Paper 3 of 2025, to guarantee an equitable and diversified investment plan across all counties before approving the proposed partial divestiture of the government’s shareholding in Safaricom PLC
During a a public engagement session held jointly by the Departmental Committee on Finance and National Planning and the Select Committee on Public Debt and Privatization, participants voiced strong opposition to the current proposal, which suggests directing all proceeds into a National Infrastructure Fund.
While acknowledging that national infrastructure projects can accelerate growth, residents argued that rural counties face more immediate priorities, specifically in health and education.
“What is our stake in the proposed divestiture? Why isn’t the government proposing to enhance it’s allocation to sectors such as education and health which are our priorities as Kitui County residents,” Mr. Musau from Kitui Central asked.
The session, led by Kitui Rural MP Hon. David Mboni at Kitui Multi-Purpose Hall in Kitui Town saw residents call for the ring-fencing of divestiture proceeds to ensure funds are only appropriated for pre-approved, high-value projects across all 47 counties, rather than just mega infrastructure projects that may only benefit specific regions.
Responding to these concerns, Hon. Mboni noted that while the demand for diversified projects is sound, large-scale infrastructure remains a powerful economic catalyst. He cited the Thwake Dam—a flagship project in the region—as a prime example of positive local impact.
“While I agree with your sentiments on the matter, let us not shy away from supporting mega infrastructure Projects such as Thwake Dam which could spur economic growth faster,” he urged.
“We are at a position where we cannot borrow further to fund some of these infrastructure projects. We shall however be proposing that these proceeds be ringfenced to ensure they are used for the intended projects,” he added.
Hon. Benjamin Langat, the Vice Chairperson of the Finance and National Planning Committee, pledged that the Committee would demand a firm commitment from the National Treasury before endorsing the deal. Recalling the controversies surrounding the 11th Parliament’s approval of Eurobond borrowing, he assured residents of a more cautious approach.
“ı want to assure you that we shall be keener this time round. We do not want to repeat what we did in the 11th Parliament when we approved the government’s uptake of the Euro Bond without tying the monies to specific projects. We’re yet to ascertain how that money was spent,” he recounted.
Kitui Woman Representative Hon. Irene Kasalu echoed residents’ concerns regarding the valuation of the deal, noting that the proposed price of KES 34 per share does not reflect the future value of Safaricom. While stating her opposition to the proposed divestiture, she promised that public views would be central to the Committee’s final recommendations.
Lunga Lunga legislator Hon. Mangale
Chiforomondo clarified that the Committee’s had no intentions to coerce the public into supporting the government’s stance, adding that their input would enrich the legislative process through diverse perspectives.
Beyond the use of divestiture proceeds, some residents suggested that a portion of the divested shares should be offered for sale to the Kenyan public rather than a foreign entity solely.
“Vodacom is a just a company like Safaricom. Why does the government want to cede majority shareholding to a foreign company, yet a portion of these shares can be allocated for sale to the public,” posed Mr. Musangi, a resident of Kitui town.
Additional concerns were raised regarding future board membership of Safaricom, job security for the current employees and the long-term fate of Safaricom Foundation once the proposed three-year commitment of status quo lapses.
The Committee is scheduled to hold its next public hearing in Embu County this Friday.
