Residents of Kitui County have urged Parliament to ensure a fair and diversified investment plan across all counties before approving the partial sale of the government’s stake in Safaricom PLC.
During a public engagement at Kitui Multi-Purpose Hall on Wednesday, led by Kitui Rural MP David Mboni, participants questioned the proposal to channel all proceeds from the divestiture into a National Infrastructure Fund. They argued that while infrastructure is important, rural counties like Kitui have more urgent needs in health and education.
“What is our stake in the proposed divestiture? Why isn't the government proposing to enhance its allocation to sectors such as education and health, which are our priorities as Kitui County residents?” asked Musau from Kitui Central.
Residents called for ring-fencing of the divestiture proceeds to ensure funds go only to pre-approved, high-value projects across all 47 counties, rather than just mega infrastructure projects benefiting certain regions.
Responding, Mboni acknowledged the concerns but emphasized the role of large infrastructure projects in driving growth. He cited Thwake Dam as an example of a project bringing positive local impact.
“While I agree with your sentiments on the matter, let us not shy away from supporting mega infrastructure projects such as Thwake Dam, which could spur economic growth faster,” he said.
Benjamin Langat, Vice Chair of the Finance and National Planning Committee, pledged that Parliament would demand a firm commitment from the National Treasury before endorsing the deal. He referenced past controversies with Eurobond borrowing, stating: “We are yet to ascertain how that money was spent. We shall be keener this time round.”
Kitui Woman Representative Irene Kasalu criticized the proposed share price of Sh34 per share, arguing it does not reflect Safaricom’s future value. She opposed the divestiture but promised that public views would guide the Committee’s recommendations.
Lunga Lunga legislator Mangale Chiforomondo assured residents that the Committee is not seeking to force public support, noting that their input would strengthen the legislative process.
Some residents suggested that a portion of the divested shares be sold to Kenyans rather than a foreign company.
“Vodacom is just a company like Safaricom. Why does the government want to cede majority shareholding to a foreign company, yet a portion of these shares can be allocated for sale to the public?” asked Musangi of Kitui town.
