Members of the public in Machakos have raised concerns and suggestions over the government’s plan to partially divest its shareholding in Safaricom PLC.
The Joint-sitting of the Departmental Committee on Finance and National Planning and the Select Committee on Public Debt and Privatisation commenced public participation on Sessional Paper No. 3 at the Mavoko National Government Constituency Development Fund Offices.
Before the session began, attendees were briefed on the facts about the proposed divestiture to ensure informed participation.
Lawmakers emphasised that the primary purpose of the sale is to raise funds for critical infrastructure development, rather than to borrow for development.
Among the issues raised, residents expressed concern over the potential loss of government control of Safaricom and its impact on service costs.
“Are Kenyans safe if the government loses majority shareholding in Safaricom? Are we likely to see an increase in transaction costs if foreigners gain control of the telco?” asked Zach, a resident of Mavoko.
Some participants urged that at least 5 per cent of the shares intended for divestiture be allocated to Kenyans.
“Why can’t Parliament make an intervention to apportion at least 5 per cent of the 15 per cent proposed to be sold to Vodafone, for purchase by Kenyans through the Nairobi Securities Exchange,” said Daniel Mutua.
Others expressed support for the sale, highlighting its potential to accelerate infrastructure development.
Mutui noted, “I support the proposed sale of the government’s stake in Safaricom since it will help accelerate infrastructure development; however, why can’t the proceeds be directed to the National Treasury rather than the proposed Fund, to promote accountability?”
Residents also suggested that funds from the sale could support other sectors, including healthcare.
“While it is a great idea to direct the proceeds of the proposed sale to infrastructure, could we also consider directing some of the money to support cancer treatment, for instance?” asked Mary Wanza.
Additional concerns included potential job losses after the three-year employee protection period lapses and the need for proceeds to be directed to the intended projects.
Participants emphasised that Safaricom, as Kenya’s most profitable company, should be safeguarded, and some recommended focusing privatization efforts on underperforming government parastatals.
The session was chaired by the Vice Chairperson of the Departmental Committee on Finance and National Planning, Benjamin Langat (Ainamoi), and attended by David Mboni (Kitui Rural) and Chiforomodo Mangale (Lungalunga).
Langat assured participants that their views would be considered when the Committee retreats to review submissions.
by MADRECK AGOLLA
