CS Mbadi Explains Why Government Opted to Remain Minority Shareholder in Safaricom

Treasury Cabinet Secretary John Mbadi has defended the government’s decision to reduce its stake in Safaricom. The shareholding was cut from 35 percent to 20 percent following the sale to Vodafone Kenya Limited.

Mbadi said the government had already been a minority shareholder before the latest transaction. He added that the state could further reduce its stake in the future to raise funds for development projects.

He argued that the government has no business being in business. The role of the state, he said, is to provide an enabling environment for private sector players rather than operating commercial enterprises.

Proceeds from the Safaricom share sale will be invested through the National Infrastructure Fund to finance commercially viable public infrastructure projects. These could include the expansion of Jomo Kenyatta International Airport and the dualling of the Nairobi–Namanga Road.

Mbadi warned opposition parties against providing misinformation while maintaining that discussions about the divestiture are welcome. He said the sale proceeded following the Court of Appeal’s decision lifting conservatory orders.

The government acted within the framework established by those rulings and in line with the rule of law. Extensive public participation was conducted across former provinces.