Kisumu residents gave mixed views during the hearing of the proposed sale of part of the government’s shares in the giant Telco Safaricom Public Limited Company (PLC).
The session of the Joint sitting of the Parliamentary Committee on Finance and Planning and the Public Debt and Privatization Committee in Kisumu was led by Homa Bay Town Member of Parliament (MP) Peter Kaluma.
During the deliberations, a section of the residents argued that the proceeds of the sale be channeled directly to the development issues that were close to the people hearts like water and electricity provision and infrastructure.
Another section vehemently opposed the sale saying it was not prudent to sell Kenya`s most profitable company and a leader in communication services in the region. Others who supported the prosed sale, demanded that very shilling from the proceeds be accounted for to empower citizens.
Speaking at a public participation forum, held at the Mama Grace Onyango Social hall, which was filled to capacity, the residents voiced concerns over transparency by the government in utilizing the Sh240 billion that they expected to be raised from the sale of the over 6.01 billion government shares in the Telco.
Elizabeth Adhiambo, a resident of Kisumu West voiced his misgivings about the government’s ability to manage proceeds from the proposed sale and sought a guarantee that the funds would be channeled towards priority sectors such as energy and infrastructure and that the resources would not be diverted to the 2027 campaigns.
She noted that the Telco supports critical national digital infrastructure including the e-Citizen platform, which contains sensitive personal and government data.
John Odhiambo, a resident of Nyakach urged the government to explore alternative financing mechanisms for its development programmes instead of selling this giant Telephony.
Collins Otieno from Kisumu East urged the government to prioritize the fight against wastage and corruption, which reportedly devours a sizable chunk of public funds every year.
The importance of public participation is captured in Article 118 of the Constitution, which mandates Parliament to facilitate public participation and hearings on various issues and laws before being enacted in order to include views of mwananchi in the legislation.
This is because the Kenya Constitution 2010 has given priority to Kenyans in any decisions being made for them.
Through Sessional Paper NO.3 of 2025 the State is planning to divest 15 per cent of its Safaricom shares by June 2026, reducing its ownership into 20 per cent.
The proposed price is Sh34 per share and is expected to raise roughly Sh149 billion (US$1.1 billion) for budget support.
It will involve a secondary public offering or direct block sales, intended to fund national development, although it has faced political opposition.
The process is part of a broader privatization strategy that includes other state enterprises and an opportunity for the government to generate funds without imposing new or more taxation on Kenyans.
The National Treasury and Economic Planning PS Dr. Chris Kiptoo, was quoted previously in Naivasha saying the divestiture is part of government efforts to raise funds without taking on new debt.
Daniel Manduku, Member of Parliament (MP) for the Nyaribari Masaba Constituency in Kisii County told the residents that as their representatives, they will ensure the money from the sale is put to good use.
The legislators assured the participants that their views would be documented and forwarded for consideration, reiterating that public participation remains a constitutional requirement in policy-making.
Currently, 25 per cent of Safaricom is publicly traded on the Nairobi Securities Exchange (NSE), with the remainder held by the Kenyan government, Vodacom, and Vodafone.
President Dr. William Ruto has defended the plan as a way to unlock value and increase public ownership, but a section of Kenyans have warned against risks to the company’s stability, citing the collapse of other privatized entities.
According to its website, Safaricom reported a 7.2 per cent profit increase to Sh.45.7 billion for the year ending March 2025, and an interim dividend of Sh0.85 per share was approved in February 2026, with a payment date of March 31, 2026.
Safaricom PLC is Kenya’s leading telecommunications provider, founded in 1997, and is majority-owned by the Kenyan government (60 per cent shareholding) and Vodacom group.
It provides mobile voice, data, and financial services, most remarkably the mobile money platform M-PESA which is Africa’s largest fintech and the world’s first mobile money transfer service, with over 30 million users in Kenya.
With over 42 million customers, the Telco boasts of extensive with 2G, 3G, 4G, and 5G coverage in the country and beyond.
By Mabel Keya – Shikuku
