National Assembly Finance Committee Chairperson Kimani Kuria has defended the Privatization Bill.
He was speaking when the Joint Committee on Finance and National Planning together with the Committee on Public Debt and Privatization held a public hearing in Mombasa County, to gather views on the proposed Privatization Bill, 2025.
The consultative forum saw residents voice both support and concerns over the government’s proposal to privatize state-owned enterprises.
Finance Committee Chairperson Hon. Kimani Kuria who is also the MP for Molo, defended the push for privatization, saying it was a strategic move to improve efficiency as well as enhancing service delivery.
He gave an example of Safaricom’s evolution, noting that the company grew exponentially after the government reduced its ownership stake to 35% and letting private sector run its operations.
“Safaricom today is a global benchmark in efficiency, innovation and profitability, but it was not always so when it was fully owned by Government. Privatization opened the door to expansion, increased profits, and thousands of jobs for Kenyans,” Kuria noted.
He further argued that privatization ensures expansion of companies and increases profits, which in turn means more employment opportunities for Kenyans and higher tax revenues for the government.
“It is also about removing layers of bureaucracy that often frustrate progress. When we privatization we reduce bureaucracy and companies are able to innovate and adapt to changing market trends,” he added.
Residents, however, raised questions on how the process would be carried out and how ordinary Kenyans are to benefit from the process.
“How will ordinary Kenyans benefit from buying shares when most of us cannot afford them?” One of the residents posed.
“We don’t want a situation where only the rich have access to shares ownership and the ordinary kenyans are excluded.”
Job security was also a recurring concern. Participants argued that every time government sells its stake, the first casualties are always workers.
“What assurances do we have that our people won’t lose jobs once privatization takes place?” They questioned.
Other residents questioned the transparency of the process saying Privatization must be done in a way that benefits the public and not just a small circle of elites.
While some participants supported the bill, believing private investment could revive struggling institutions and improve services, others cautioned that safeguards must be put in place to protect workers, ensure broad participation in shareholding, and prevent loss of strategic national assets.
~Report by Parliamentary communication team