Stakeholder consultations on the proposed partial divestiture of the government’s stake in Safaricom PLC resumed this morning before the joint sitting of the Departmental Committee on Finance and National Planning and the Select Committee on Public Debt and Privatization.
Prof. Fredrick Ogola, a strategy and change management expert representing Operation Linda Jamii, highlighted concerns over the sale. He described Safaricom as a strategic national asset, critical for telecommunications, mobile money, public service delivery, and national data infrastructure.
Ogola warned that reducing government ownership would limit state influence and consolidate control in foreign hands. He stressed that selling a profitable, dividend-generating asset to meet short-term fiscal pressures violates prudence, accountability, and intergenerational equity.
Referring to Article 227 on fair and competitive disposal of public assets, Ogola argued the proposed sale lacks transparency, competitive evaluation, and cost-effectiveness, leaving minority shareholders exposed to risk. He also cited national security and data sovereignty concerns under the Data Protection Act, 2019.
The expert urged Parliament to reject the current divestiture plan, conduct independent valuation, ensure transparent sale structures, and allow at least 50% of any divested shares to be allocated to local retail investors.
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