Molo MP and Finance Committee chairman Kuria Kimani during a past session.

National Assembly Finance Committee chair Kuria Kimani has called on lawmakers to avoid permanent fiscal mistakes during the ongoing privatisation of state assets.

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Speaking ahead of the fifth parliamentary session starting February 10, the Molo MP framed the agenda as a historic moment for the 13th Parliament.

“The choices made at this stage will extend far beyond this House and well into future administrations,” he told MPs.

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Central to the discussion is the accelerated sale of state-owned enterprises (SOEs), including the controversial Sh244.5 billion divestiture of the government’s stake in Safaricom PLC and the ongoing sale of Kenya Pipeline Company.

Kimani stressed that “once assets are divested, the fiscal, social and economic consequences are permanent,” making Parliament’s role critical.

The Kenya Kwanza administration is pursuing privatisation to manage a constrained budget, with limited room for development spending.

Of the Sh3.32 trillion revenue projected for FY 2025-26, Sh1.10 trillion will go to interest payments, Sh960 billion to wages, Sh205 billion to pensions and civil service obligations and Sh415 billion to county transfers.

Contingencies leave minimal fiscal space, worsened by government exposure to struggling parastatals, with guaranteed debt standing at Sh83.2 billion as of June 2025.

Privatisation is seen as a fiscal risk-management tool, Kimani said, noting Kenya’s challenges in selling SOEs between 2008 and 2023. After legal and operational delays, at least 18 SOEs are now slated for sale.

The Safaricom deal, signed in December 2025, involves selling 15 per cent of the government’s 35 per cent stake to Vodacom at Sh34 per share, generating Sh204.3 billion, plus Sh40.2 billion from monetising future dividend rights on the remaining 20 per cent, bringing the total to Sh244.5 billion.

This reduces the state’s stake to 20 per cent while giving Vodacom majority control at 54.9 per cent.

While the Treasury hailed the transaction as profitable, Kimani highlighted MPs’ oversight role amid public concerns over valuation, governance and compliance with the new Privatisation Act, 2025.

Unlike the 2023 framework, the new law requires explicit parliamentary approval, empowers lawmakers to propose amendments and strengthens transparency and accountability measures.

Kimani outlined the risks associated with the sale, including undervaluation, corruption, opaque transactions, social disruption and potential threats to strategic entities.

“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 the Sessional Paper on the Safaricom sale undergoes review after public hearings in 30 counties, MPs are urged to ensure proceeds are ring-fenced and used transparently, while safeguarding national interests.