As Parliament prepares to resume sittings, concerns are growing over how the sale of state-owned companies could lock the country into financial decisions that cannot be undone. National Assembly Finance Committee chair Kuria Kimani has urged MPs to approach the privatisation process with caution, warning that mistakes made now will carry lasting consequences.
Addressing lawmakers ahead of the fifth parliamentary session beginning on February 10, the Molo MP said the 13th Parliament is facing decisions that will shape Kenya’s future long after its term ends. “The choices made at this stage will extend far beyond this House and well into future administrations,” he told MPs.
The warning comes as the government moves quickly to dispose of key state assets, including a planned Sh244.5 billion sale of its stake in Safaricom PLC and the ongoing privatisation of the Kenya Pipeline Company. Kimani said Parliament’s role is critical, noting that “once assets are divested, the fiscal, social and economic consequences are permanent.”
The Kenya Kwanza administration is turning to privatisation as it struggles with limited funds for development. Budget projections for the 2025–26 financial year show expected revenue of Sh3.32 trillion, much of which is already committed to fixed costs.
From that amount, Sh1.10 trillion will be used to service interest payments, Sh960 billion will go to salaries, Sh205 billion has been set aside for pensions and other civil service obligations, while Sh415 billion will be transferred to counties. After these commitments and contingencies, little money remains available.
Financial pressure has also been intensified by weak performance among several parastatals. Government exposure through guaranteed debt linked to state firms stood at Sh83.2 billion as of June 2025, adding strain to public finances.
Kimani said privatisation is being pursued as a way to manage these risks, while pointing out that Kenya has a mixed record in selling state-owned enterprises. Between 2008 and 2023, many proposed sales stalled due to legal disputes and operational challenges, but at least 18 SOEs are now earmarked for disposal.
One of the most closely watched transactions is the Safaricom deal signed in December 2025. Under the agreement, the government will sell 15 per cent of its 35 per cent stake to Vodacom at Sh34 per share, raising Sh204.3 billion.
An additional Sh40.2 billion will be raised through the monetisation of future dividend rights on the remaining 20 per cent stake, bringing total proceeds from the transaction to Sh244.5 billion. The deal will reduce the government’s ownership in Safaricom to 20 per cent and increase Vodacom’s stake to 54.9 per cent, giving it majority control.
While the Treasury has described the transaction as beneficial, Kimani said MPs must remain alert due to public concerns surrounding valuation, corporate control and adherence to the Privatisation Act, 2025.
He noted that the new law places more responsibility on Parliament than earlier frameworks. Unlike the 2023 system, the Act requires clear approval by lawmakers, allows MPs to propose changes and introduces stronger measures on openness and accountability.
Kimani outlined several risks tied to asset sales, including undervaluation, corruption, lack of transparency, social disruption and threats to strategic national interests. “Privatisation itself is not the risk,” he said. “The risk lies in how it is executed. Strong legislation, vigilant oversight and institutional accountability safeguard national value and public confidence.”
As MPs review the Sessional Paper on the Safaricom sale following public hearings held across 30 counties, Kimani urged Parliament to ensure the proceeds are protected, properly tracked and used openly, while keeping national interests at the centre of the process.
