The joint sitting of the Committee on Finance and National Planning and the Select Committee on Public Debt and Privatization this morning commenced public participation on Sessional Paper No. 3 relating to the proposed partial divestiture of the Government of Kenya’s shareholding in Safaricom.
In Machakos County, members of the public assembled at the Mavoko National Government Constituency Development Fund Offices to participate in the exercise.
Before the commencement of the session, members of the public were taken through the facts about the proposed divestiture to facilitate an informative participation.
Lawmakers present informed the public that the sole reason for the proposed divestiture is to raise funding for crucial infrastructure development, rather than borrowing for development.
Among the issues raised by the members of the public in the session chaired by the vice chairperson of the Committee on Finance and National Planning, Benjamin Langat (Ainamoi), include those on the impact of the loss of control of the government’s majority shareholding in Safaricom, in particular, about the pricing of the telco’s services.
“Are Kenyans safe if the government loses majority shareholding in Safaricom? Are we likely to see an increase in transaction costs if foreigners gain control of the telco?, asked Rev Zach, a resident of Mavoko.
Other residents have urged the Committee to intervene to allow at least 5 percent of the shareholding intended for divestiture to be purchased by Kenyans.
“Why can’t Parliament make an intervention to apportion at least 5 percent of the 15 percent proposed to be sold to Vodafone for purchase by Kenyans through the Nairobi Securities Exchange?” submitted Rev. Daniel Mutua.
A portion of the public supported the proposed divestiture, pointing out that it would speed up infrastructure development. However, they insisted that the National Treasury receive the sale proceeds instead of the proposed National Infrastructure Fund.
“I support the proposed sale of the government’s stake in Safaricom since it will help accelerate infrastructure development; however, why can’t the proceeds be directed to the National Treasury rather than the proposed Fund, to promote accountability? Mutui, a resident, asked.
Some residents who supported the deal also proposed that, besides the proposed infrastructure development from the envisaged proceeds, the government should consider increasing funding to other ailing sectors, such as the health sector.
“While it is a great idea to direct the proceeds of the proposed sale to infrastructure, could we also consider directing some of the money to support cancer treatment, for instance?” Mary Wanza asked.
Other concerns expressed by the public include possible job losses after the lapse of the three-year timeline within which the current employees of the telco enjoy protection. The residents also urged that, should the sale go through, the money should be directed to the intended projects.
Other residents noted that Safaricom is Kenya’s most profitable company and should be safeguarded. They urged the Committee to consider privatizing other underperforming government parastatals.
Langat, who was accompanied by David Mboni (Kitui Rural) and Chiforomodo Mangale (Lungalunga), has assured the participants that their views will be taken into consideration when the committee retreats to review the submissions.
