Nyeri residents have cautioned the government against proceeding with the proposed divestiture of 15 per cent of state-owned shares in Safaricom to the Vodacom group.
Speaking at a public participation forum that was held at the Nyeri cultural centre, the residents have cited concerns over transparency by the government in utilising the Sh240 billion that the State is hoping to raise from the sale of the over 6.01 billion shares.
They also raised concerns over data protection and the long-term economic ramifications that the planned divestiture may have on future generations.
One Ian Gichuki expressed his reservations about the government’s ability to manage proceeds from the proposed sale and sought a guarantee that the funds would be channelled towards priority sectors such as energy and infrastructure and that the resources would not be diverted to campaign for the 2027 general polls.
Gichuki questioned the timing and motive behind the proposed sale citing instances where independent constitutional bodies such as the Office of the Controller of Budget had called out the executive for failing to exercise fiscal discipline.
He sought assurance that the views presented during the session would be factored in before the ultimate decision of off-loading the shares is reached and that the exercise was not just a mere formality.
“There is huge worry among Kenyans. How sure are we that Safaricom has not already been sold, and this exercise is just a formality?” He asked.
“We want an assurance that the money will be utilised for the stated purpose,” added Gichuki.
Njeri Mwangi, another resident, warned that selling public shares would burden future generations and expose the Kenyan’s data to serious cybersecurity as well as digital sovereignty risks.
She said Safaricom remains a uniquely Kenyan-grown success story and cautioned against relinquishing control of a strategic national asset.
She noted that the Telco supports critical national digital infrastructure, including the e-Citizen platform, which contains sensitive personal and government data.
She urged the government to explore alternative financing mechanisms such as Initial Public Offerings (IPOs), arguing that direct sale of shares could expose the country to unforeseen technological risks, including emerging artificial intelligence threats.
“Safaricom is the only fin-tech we can confidently say Kenyans have grown. Are we ready to let that go?” she posed.
“Executing this divestiture is a threat to data security and national security. Are we ready to sell a company that hosts such critical information?” Ms Mwangi probed.
Samuel Theuri challenged the government to prioritise the fight against corruption as one of the most effective means of raising development funds.
While quoting remarks by former President Uhuru Kenyatta that the country was losing Sh2 billion daily to corruption, Theuri urged the government to prioritize recovery of funds lost through corruption noting that this was the most straightforward way of pooling resources for national development.
“If government is serious, it should fight corruption and recover the money needed for development instead of selling public assets,” Theuri said.
The State is planning to offload 15 per cent of its Safaricom shares, reducing its ownership into 20 per cent. The proposed price is Sh34 per share, which is expected to generate gross proceeds which will go towards funding key infrastructural projects.
According to the Principal Secretary for Treasury and Economic Planning Dr Chris Kiptoo, the divestiture is part of Government efforts to raise funds without taking on new debt.
Speaking in Naivasha last week, Kiptoo said that the Sh34 selling price is the best pricing in the market and offers value for money.
The nationwide exercise is being spearheaded through a joint sitting of the National Assembly Departmental Committee on Finance and National Planning, and the Select Committee on Public Debt and Privatization.
The session in Nyeri was chaired by the Vice Chair of the Select Committee on Public Debt and Privatization Irene Njoki.
Other members present included Lamu West legislator, Stanley Muiruri, Bomachoge Borabu Member of Parliament, Obadiah Barongo, and Kesses Member of Parliament Julius Rutto.
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.
By Wangari Mwangi & Samuel Maina
