KISUMU, Kenya, Jul 4 — Treasury Cabinet Secretary John Mbadi has defended the government’s partial sale of its stake in Safaricom, insisting the transaction was lawful, transparent and intended to finance critical infrastructure projects rather than plug budget deficits.

📻 Breaking It Down

Speaking in Kisumu on Saturday, Mbadi dismissed criticism from the opposition, saying the divestiture was a deliberate policy decision undertaken in accordance with the law after the Court of Appeal lifted conservatory orders that had temporarily halted the transaction.

He said although the substantive case remains pending before the High Court, the government acted within the law and would abide by the court’s final determination.

“The action that the government took is actually in sync and in compliance with the principles of respect for the rule of law,” Mbadi said.

📌 What You Need to Know

The Cabinet Secretary rejected claims by opposition leaders led by Wiper leader Kalonzo Musyoka that the government rushed the sale or failed to involve the public, insisting the proposal underwent extensive public participation before receiving parliamentary approval.

Mbadi said he personally conducted public engagement forums across several regions before Parliament considered the proposal, adding that the National Assembly also carried out its own consultations.

“I personally took the initiative to conduct extensive public participation even before Parliament undertook the same,” he said.

He stressed that proceeds from the transaction would be channelled into the National Infrastructure Fund to finance strategic development projects, including roads, energy, irrigation and the expansion of Jomo Kenyatta International Airport, rather than recurrent government expenditure.

“The money is not going to be used for general budgetary support. We are investing that money. We are converting it into another public asset,” he said.

Mbadi defended the decision to reduce the State’s shareholding in Safaricom, arguing that the government had already become a minority shareholder and should focus on creating an enabling environment for private enterprise instead of owning commercial businesses.

📰 Source: Capital FM Kenya