Gov't defends Safaricom share sale, invites critics to give better offers

Speaking in Naivasha, National Treasury Principal Secretary Dr Chris Kiptoo challenged critics of the divestiture to present better offers than the one under consideration.

The final day of the National Assembly retreat in Naivasha, Nakuru County, saw the National Treasury come under scrutiny, with Dr. Kiptoo, who was representing Treasury Cabinet Secretary John Mbadi, facing tough questions from a section of MPs opposed to the sale.

Some lawmakers claimed the government was selling the shares at a throwaway price and faulted the decision to pursue a block sale to an existing shareholder.

"We have a block sale to an existing shareholder. We should have diversified," said Caroli Omondi, Suba South MP.

"Members, please reject this thing called stripping of government investments," said Peter Salasya, Mumias East MP.

Dr Kiptoo, backed by several Kenya Kwanza lawmakers, defended the process, saying the government had conducted due diligence and negotiated the best possible offer.

"If we offered the sale to the public, we would have sold the shares at a discount, not a premium. We have negotiated for the best offer. We are getting Ksh.11 billion more," said Dr Chris Kiptoo, Principal Secretary, National Treasury.

Kimani Kuria, Chairperson of the National Assembly Finance Committee, said Parliament wanted clarity on how the share valuation was arrived at.

"We want them to tell us which model they arrived at to get the shares at 70 to 80," said Kimani Kuria.

The Treasury also challenged those claiming to have better proposals to formally submit them.

"If there’s anybody who has other avenues to get more value for our shares, are you willing to accept it?" posed Kimani Ichung’wah, Majority Leader in the National Assembly.

"As the National Treasury, we welcome any option that will give Kenyans better value. We are willing to accept anything better," Dr. Kiptoo responded.

The National Assembly Finance Committee is expected to begin public participation next Tuesday on the planned sale of key government assets.