National Treasury Cabinet Secretary John Mbadi has strongly defended the government’s plan to sell 15 per cent of its Safaricom stake for Sh204.3 billion, insisting the controversial deal is a strategic move to unlock capital for national development—not a desperate attempt to patch budget holes.

Speaking during a televised interview on Friday, Mbadi said the country must embrace “bold decisions” to stabilise the economy.
“This is the right direction that this country needs to take,” he said. “We are not in a very comfortable economic position, and something needs to be done. This is unlocking value from a mature asset.”

The sale would lift Vodacom’s ownership from 40 to 55 per cent, giving the South African telecoms giant effective control over Kenya’s most profitable company. The government’s shareholding would drop from 35 to 20 per cent, while the public remains at 25 per cent.

Mbadi maintained that the money raised will not be used to patch budget deficits but will instead be channelled into the National Infrastructure Fund and the Sovereign Wealth Fund for long-term, large-scale public projects.
“We are not selling Safaricom shares to finance our day-to-day budget. These resources go directly to infrastructure development,” he said.

A public notice issued Tuesday outlined the first steps of the transaction, which involves internal restructuring within Vodafone and Vodacom Group before Vodafone takes formal control.

But the announcement has triggered political and public backlash.

Kiharu MP Ndindi Nyoro, a former Budget Committee chair, has blasted the deal as opaque and grossly undervalued.
“There was no competitive bidding. How did they set the price, and how did they pick Vodacom as the buyer?” Nyoro said on Thursday.
He argued that selling shares at Sh34 amounts to “deliberate suppression” of Safaricom’s value and warned taxpayers stand to lose billions.

“This is underselling the country’s most valuable company at the detriment of Kenyans,” he said.

The four-stage transaction—proposal initiation, approval, execution and reporting—is now entering its scrutiny-heavy phase, with mounting calls for Parliament to halt or review the deal.

As the political storm intensifies, the Treasury insists the sale is essential to drive infrastructure growth. Critics, however, are warning that Kenya could be relinquishing too much control, too cheaply, at a moment when Safaricom’s dominance continues to shape the country’s digital and financial future.