Vihiga residents split over proposed sale of government Safaricom shares

Residents of Vihiga County have expressed sharply divided opinions over the government’s proposal to sell part of its shareholding in Safaricom PLC to the Vodacom Group during a public participation forum held in Mbale town.

The forum, convened by a joint parliamentary team drawn from the Finance and National Planning Committee and the Public Debt and Privatisation Committee, revealed divided public opinion about the planned sale of 15 percent of the government’s stake in the telecommunications giant.

Currently, the Government of Kenya owns about 35 percent of Safaricom shares, Vodacom Group holds approximately 40 percent, while public shareholders, including ordinary Kenyans, own the remaining 25 percent.

While some residents supported the proposal, arguing that it could unlock funds for development projects, others strongly opposed the move, accusing the government of rushing into a deal without adequate justification.

One of the most vocal critics, Idi Sufuria, questioned the rationale behind the proposed sale, saying the government had failed to provide convincing reasons for disposing of a profitable public asset.

“The government is rushing to sell shares in a company that is performing very well and giving good returns. Why the hurry, and what is the real reason behind this sale?” posed Sufuria.

He added, “If shares must be sold, why not prioritise Kenyans instead of transferring them to Vodacom?”

Similar sentiments were echoed by Arafat Mbalo from Lugaga-Wamuluma, who described the proposed transaction as “a blunt theft of public funds.”

“Why does the government feel comfortable selling public assets that are performing well in terms of returns?” Mbalo asked.

The proposed sale has sparked nationwide debate, with the government describing the deal as “too good to be ignored.”

Officials argue that the move would help raise funds for critical infrastructure projects such as roads, electricity, water, and airports, while reducing reliance on borrowing and avoiding tax increases.

However, some leaders and Kenyans have raised concerns over what they describe as a rushed process to offload more than six billion shares.

Despite the criticism, a section of Vihiga residents backed the proposal, saying the funds could boost development and improve livelihoods.

Joyce Chambera from Izava said the sale could strengthen government finances and translate into tangible benefits at the grassroots.

“As a village leader, I see this sale helping to grow government coffers and support development. If well managed, it could even help counties meet obligations like paying salaries,” she said.

Arnold Kamadi called for broader and more equitable use of the funds, should the sale proceed.

He urged the government to channel part of the money towards reviving struggling industries in the western region.

“If this sale happens, the money should help all regions. We want to see industries like Mumias Sugar Company and Nzoia Sugar Company revived to create jobs and stimulate the local economy,” said Kamadi.

Across the board, residents demanded strict accountability on how any proceeds from the sale would be used, warning against mismanagement of public resources.

More than 100 residents attended the meeting held at Praise Centre in Mbale.

The session was chaired by Dr Daniel Manduku, the Member of Parliament for Nyaribari Masaba Constituency.

Public Debt and Privatisation Committee chairperson and Balambala MP Abdi Omar Shurie sought to allay fears, assuring residents that no sale had been concluded.

“The sale of Safaricom shares has not been done yet. As Members of Parliament, we will make a decision guided by your views, and no Kenyan will be harassed or disadvantaged because of this process,” said Shurie.

From the Finance and National Planning Committee, Karachuonyo MP Andrew Adipo emphasised that the purpose of the public participation exercise was to safeguard public funds.

“Kenyans’ money must be protected. That is why we are here to listen to your views and ensure they guide any final decision,” said Adipo.

The committees noted that similar public participation forums would be conducted in many counties across the country before Parliament determines the proposed sale.

Safaricom PLC is a private company registered in Kenya and listed on the Nairobi Securities Exchange (NSE), with ownership spread among the Government of Kenya, Vodacom Group, and thousands of ordinary Kenyan shareholders.