Residents of Kajiado County on Thursday took part in a public participation forum on the Government’s proposal to partially offload its shares in Safaricom PLC, with many calling for transparency and clear safeguards on how the proceeds would be used.
The session, held at Maasai National Polytechnic in Kajiado Central Constituency and moderated by Baringo North MP Joseph Makilap, brought together local leaders, professionals and members of the public who shared their views on the proposed divestiture of a 15 per cent government stake in the telecommunications giant.
A majority of those who spoke rooted for accountability in the utilization of funds should the sale go through. Several residents said the money raised from the transaction must be strictly channeled towards infrastructure development, as proposed by the Government, and should address pressing needs such as roads, water supply, health facilities and schools.
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Others questioned the rationale behind the proposed sale of the 15 per cent shareholding to South Africa based Vodacom, which is already a significant shareholder in Safaricom. Some participants suggested that part of the shares be offered to the Kenyan public to allow wider local ownership, arguing that citizens should benefit directly from one of the country’s most profitable firms.
The nationwide public participation 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 committees are collecting views from Kenyans across the country before preparing and tabling a report in Parliament.
The proposed sale stems from the Government’s plan to raise capital through partial divestiture of its stake in Safaricom PLC, one of East Africa’s leading telecommunications companies and a major contributor to the national exchequer through taxes and dividends. The Government currently holds a significant shareholding in the company alongside other institutional investors and public shareholders trading at the Nairobi Securities Exchange (NSE).
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According to the Government, the partial offload of 15 per cent of its shares is part of broader fiscal measures aimed at financing development projects and easing pressure on public finances. Proceeds from the transaction are expected to support infrastructure development if the proposal is approved.
Under Articles 10 and 118 of the Constitution, public participation is mandatory in major policy decisions and legislative processes, particularly those involving public assets. The ongoing forums are therefore intended to give citizens an opportunity to express their views, raise concerns and make recommendations before Parliament considers the matter.
The parliamentary committees are expected to compile submissions from the various counties and make recommendations to the National Assembly on whether the proposed sale should proceed and under what conditions.
By Benedict Aoya
