A new law paves the way for the sale of key state-owned companies like KPC and KICC. While the government promises infrastructure development, citizens fear a new wave of corruption and loss of sovereign wealth.
In a move that has sparked fierce debate across the country, the Kenyan government has scored a major legal victory, clearing the path for the sale of several high-profile state-owned enterprises. The High Court’s recent ruling, which declared the Privatisation Act 2025 constitutional, has given the administration the green light to proceed with its ambitious plan to sell shares in what many consider the nation’s “crown jewels” .
At the heart of the plan is the sale of a significant stake in strategic corporations, including the Kenya Pipeline Company (KPC), the Kenyatta International Convention Centre (KICC), New Kenya Cooperative Creameries (KCC), and the Kenya Seed Company . The most immediate and controversial transaction is the proposed offloading of 15% of the government’s stake in Safaricom PLC, Kenya’s most profitable company.
A Promise of Development vs. A Fear of Plunder
The government, through the proposed National Infrastructure Fund Bill, 2026, argues that the proceeds from these sales are essential for the country’s future. The funds would be “ring-fenced” in a dedicated account and used to finance vital national infrastructure projects, such as new airports, dams, and roads, without having to raise taxes or increase public debt .
However, this promise has been met with deep skepticism from the public. During nationwide public participation forums, citizens voiced their fears, repeatedly referencing past financial scandals like the Eurobond saga as a reason for their distrust . The dominant mood was one of caution and suspicion over the potential misuse of these billions.
- “Where is the Money Going?”: A key concern was the proposal to channel the proceeds into the Consolidated Fund, the government’s main bank account. Residents like Charles Nyaga from Embu warned that this would make it impossible for the public to track how the money is spent, increasing the risk of misappropriation .
- “Who Will Own Our Company?”: The structure of the Safaricom deal, in particular, has raised alarm. The 15% stake is not being offered first to Kenyan citizens on the Nairobi Securities Exchange, but is set to be acquired by South Africa’s Vodacom Group. This would increase Vodacom’s stake to approximately 55%, giving it effective control of the company and reducing the government’s share to just 19.99% . This has triggered formal inquiries from East African regulators concerned about the deal’s impact on competition across the region .
- “Seal the Loopholes First!”: Across the counties, the message was clear. As boda boda rider Amos Lekitap from Maralal bluntly put it, “We have been losing a lot of money to corruption. If we don’t find ways of sealing the leakage gaps, even these proceeds will not yield much” .
A Judge’s Warning
Even the presiding judge, Justice Bahati Mwamuye, while upholding the law, issued a powerful statement on the immense public trust at stake. He noted that these state-owned enterprises “constitute the sovereign wealth of the Republic of Kenya, held in trust for the people of Kenya, both current and future generations.” He stressed that their disposal must be conducted with the “highest standards of integrity, transparency, and accountability” .
As lawmakers retreat to draft their final report on the Safaricom sale, the nation waits with bated breath to see if this “great asset sale” will truly build a brighter future or simply become another chapter in Kenya’s long history of lost public wealth.