Mbadi: We already received the money from Safaricom share sale

Treasury Cabinet Secretary John Mbadi has defended the government's controversial sale of a 15% stake in Safaricom, insisting the transaction was lawful, transparent and aimed at financing critical infrastructure, while accusing opposition leaders of politicising an economic decision.

Speaking during a press briefing on Saturday, Mbadi dismissed criticism led by opposition leader Kalonzo Musyoka and former Attorney General Justin Muturi, saying the government had complied with the law and respected court processes throughout the divestiture.

"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.

The CS noted that the transaction only proceeded after the Court of Appeal of Kenya lifted conservatory orders previously issued by the High Court, adding that the government had obeyed the initial court orders before successfully appealing them.

He stressed that while the substantive constitutional petition challenging the transaction remains before the High Court, the government acted within the legal framework established by the appellate court.

Mbadi rejected claims that the sale lacked public participation, saying the process complied with Section 87A of the Public Finance Management Act and received approval from the National Assembly after extensive public engagement.

He said he personally travelled across several regions—including Migori, Kakamega, Nakuru, Eldoret, Kiambu, Meru and Kilifi—to gather public views before Parliament considered the proposal.

"The National Assembly equally conducted extensive engagement with the public. This exercise was done meticulously and within the law," he said.

He challenged the opposition to demonstrate that it had similarly consulted Kenyans before opposing the sale.

"I want to ask Kalonzo, J.B. Muturi and the rest who are contesting this direction, where have you conducted public participation? I did," Mbadi said.

Mbadi accused the opposition of turning an economic and investment decision into a political contest.

He claimed the same leaders had failed to stop the legislation establishing the National Infrastructure Fund in Parliament and were now using the courts and public statements to derail the government's agenda.

"This is an economic transaction. You don't play politics with it. You put forward substantive matters," he said.

The CS also questioned why Kalonzo was opposing the latest divestiture despite serving in the governments of former presidents Daniel arap Moi and Mwai Kibaki, both of which sold portions of the government's Safaricom stake.

"Where did the 65% go? President Moi divested part of the shares. President Kibaki also did the same. Kalonzo was in those governments and never objected," Mbadi said.

He argued that unlike previous administrations, which channelled proceeds into the general budget, the current government would invest the money through the National Infrastructure Fund.

According to Mbadi, the government has already received about KSh240 billion, which has been transferred to the National Infrastructure Fund rather than being used for recurrent expenditure.

He said the money would finance commercially viable infrastructure projects, including the expansion of Jomo Kenyatta International Airport, major highways, irrigation schemes and investments in the energy sector.

"If it goes to JKIA, Kenyans will see the airport. If it goes to the Nairobi-Namanga road, they will see the dual carriageway," he said.

Mbadi argued that retaining the shares for annual dividends would generate significantly less value than selling them now to finance projects capable of boosting long-term economic growth.

"You cannot wait for Sh7 billion in dividends every year when you can unlock about Sh240 billion today to invest in transformative infrastructure," he said.

Mbadi reiterated his long-held view that the government should gradually exit commercial enterprises.

"We have been minority shareholders in Safaricom for years. The difference between owning 35% and 20% is minimal in terms of control," he said.

"I want us to become even further minority shareholders by divesting more to raise money and do other constructive things. Government has no business being in business."

He argued that private sector ownership generally leads to stronger growth, saying businesses perform better after government exits.

The Treasury CS said the government had completed interviews for the National Infrastructure Fund's board and expected to announce successful candidates within a week before recruiting a chief executive officer.

He said the fund would be managed by professionals with expertise in investment banking, finance, accounting and engineering to ensure accountability and prudent investment of public resources.

Mbadi added that Kenya's infrastructure ambitions—including expanding electricity generation, modernising roads and improving irrigation—cannot be financed through the normal budget because of existing debt obligations.

"We have to be innovative and creative. We don't have money in the current budget to undertake these major projects," he said.

"The National Infrastructure Fund is a solution, and we are committed to making it work because we believe it is good for Kenya."