Residents of Tharaka Nithi County have adopted a cautious stance in their approval of the National Government’s plan to offload 15 per cent of its 35 per cent stake in Safaricom to Vodacom.
The divestiture is intended to fund critical national infrastructure projects.
During a public participation forum at Kathwana County Hall, residents signaled their support for the proposal, but demanded stringent safeguards to ensure the transaction proceeds are not diverted from their intended purpose.
The session was chaired by Kitui Rural lawmaker Hon. David Mboni, who underscored the importance of the exercise. He noted that public engagement is a constitutional imperative and that the residents’ views would be vital in enriching the Committee’s final recommendations to the House.
“We are here because it is a constitutional obligation that whenever the National Assembly is required to make a crucial decision such as these one, we should seek your views,” he stated.
Highlighting a persistent trust deficit between the citizenry and the government, participants cautioned against the misdirection of funds.
Charles Nyaga expressed a sentiment shared by many, noting that while the plan could provide fiscal relief, transparency remained a concern.
“I support the proposed divestiture plan because it will cushion us from higher taxes or uptake of more loans. I am however doing so reluctantly because we are not sure that the money will be directed to the identified causes,” Nyaga told the forum.
Residents urged the Committee to compel the National Treasury to provide a comprehensive list of the projects slated to benefit from the sale before any deal is approved.
“Hon Members, could we get a breakdown of the projects to be funded by these proceeds? We also want to see the projects get distributed equally,” Peter Gitonga told the Committee.
Responding to these concerns, Lunga Lunga MP Hon. Chiromodo Mangale assured residents that the Committee would recommend ring-fencing of the proceeds. The funds are expected to be deposited into the National Infrastructure Fund, which aims to net approximately KES 500 billion.
“The proceeds of this sale are meant to form part of the National Infrastructure Fund which is set to net about KES 500bn. However, we wish to assure you that we shall be recommending to the House to pre-approve all the projects set to benefit from these proceeds,” Hon. Mangale assured the forum.
The decision to offload the entire 15 per cent stake specifically to Vodacom also drew scrutiny.
Mutegi Kabisani, an advisor to the Tharaka Nithi Governor, urged the Committee to conduct a thorough background check on the telecommunications giant. He claimed that the telco’s performance had been declining the last several years hence the need for close scrutiny.
“It is not clear why the government has proposed to offload the entire 15 per cent stake to Vodacom and not any other multi-national firm within the sector,” he argued.
Broader questions regarding the sustainability of selling state assets were also raised by the youth and local representatives.
“Are we going to sell all government assets to fund development projects,” asked Michael Kimathi from Maara Constituency.
“As young people we are worried with what is happening. We expect the government to safeguard our resources for the future. We are raising concerns because we are worried about our future,” added Ibrahim Muthengi, a youth leader.
Mboni clarified the government’s broader strategy, explaining that the focus is on offloading stakes in non-performing entities to reduce the fiscal burden on taxpayers.
“We are spending a lot of money to fund the operations of parastatals every year. The government should not be actively in business, but rather should provide a conducive environment to spur economic growth,” Mboni explained.
He concluded by assuring the residents that all views would be integrated into the Committee’s report once the public hearings conclude.
The Committee is scheduled to receive further submissions in Meru County tomorrow.
