Prime Cabinet Secretary Musalia Mudavadi has strongly defended the government’s privatisation agenda, urging Kenyans to embrace the private sector as a key engine of national development. Speaking on Tuesday, December 9, 2025, during the launch of the Kenya Diaspora Investment Strategy 2025–2030 in Nairobi, Mudavadi said Kenya’s economy has historically benefited whenever citizens supported bold reforms.
Mudavadi pointed to Safaricom as a powerful example of how privatisation can transform a struggling state monopoly into a global force. He recalled the era of the Kenya Post and Telecommunications Corporation (KPTC), which operated as a government monopoly but was losing money and draining public resources.
According to him, opening the sector to private players was the turning point.
“It is from that brave move that Kenyans made to embrace the private sector that made Safaricom the giant that it is today,” Mudavadi said.
He noted that Safaricom is now the largest private-sector investor in Ethiopia – an achievement he said would have been impossible under full government control. Mudavadi reminded Kenyans that the State currently owns only about 33 percent of Safaricom, and the planned privatisation concerns only part of that stake.
He explained that selling a portion allows the government to raise funds for development while giving ordinary Kenyans and investors more ownership through the Nairobi Securities Exchange.
Mudavadi dismissed fears that reducing the State’s shareholding weakens national interests.
He clarified that entities with government ownership at or below 33 percent are regarded as private companies, where the State acts as an investor, not a manager.
“Safaricom is not a parastatal. Safaricom is a private company,” he said, adding that this fact is often misunderstood in discussions about privatisation.
The Prime CS also cited Kenya Commercial Bank (KCB) as a success story. KCB was once fully government-owned, and its directors even used blue number plates as a sign of parastatal status. When the government reduced its shareholding to about 33 percent, KCB transitioned into a publicly listed private company. Today, it ranks among the largest banks in East Africa, while the State continues to earn dividends from its remaining stake.
Mudavadi used these examples to challenge what he described as widespread misinformation and conspiracy theories surrounding privatisation.
“There is too much conspiracy theory every time privatization is discussed,” he said. “If you were to ask me, I would push and privatise even more.”
He urged citizens, both in Kenya and abroad, to understand the long-term benefits of private sector participation, including increased efficiency, better management, regional expansion, and higher economic output.
He criticised politicians who often frame privatisation as “selling the silverware,” arguing that state assets lose their value when trapped in poor management systems.
“We politicians stand out there and say, ah, you’re selling the silverware. What is the worth of a rose on a heap of garbage?” he posed.
Mudavadi’s sentiments come at a time when the government is advancing plans to privatise 11 state-owned enterprises, including the Kenyatta International Convention Centre, Kenya Pipeline Company, New Kenya Cooperative Creameries, and the National Oil Corporation of Kenya.
The Prime CS said privatisation remains one of the most effective tools to unlock investment and drive Kenya’s next phase of economic growth.
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