CS Mbadi Explains Why State Deals Cannot be Discussed Publicly Amid Sale of Govt Shares

National Treasury Cabinet Secretary John Mbadi has defended the government’s decision not to publicly discuss certain ongoing financial negotiations, warning that premature disclosure could jeopardise market stability and derail critical national transactions.

Speaking during an interview on Spice FM on Wednesday, December 10, Mbadi said that government engagements with companies — especially those involving capital markets and major state assets — follow a strict legal process that does not allow early public debate before formal proposals are submitted.

Mbadi noted that financial agreements are “highly sensitive,” and revealing details too early can trigger:

Market disruptions

Investor panic

Legal complications

Collapse of negotiations

He said full transparency only becomes possible once a formal offer is received, Cabinet approves it, and the National Assembly opens the door for public participation.

The CS was responding to allegations from Opposition leaders Rigathi Gachagua, Kalonzo Musyoka, and former Budget Committee chair Ndindi Nyoro, who claimed the government was planning to dispose of key national assets — including JKIA and Kenya Pipeline — without public involvement.

Mbadi outlined the legally predetermined stages every major state transaction must go through:

Proposal Initiation:
Government identifies an action and drafts the initial proposal.

Oversight Stage:
The National Assembly reviews the proposal and grants approval where necessary.

Execution Stage:
Government proceeds with the approved financial transaction.

Reporting Stage:
Full documentation is submitted to oversight bodies, including:

Auditor General

Controller of Budget

National Assembly

Commission on Revenue Allocation

He emphasized that public engagement happens only after Cabinet clears the proposal, and Parliament formally invites citizens to participate — a process aired live for transparency.

Mbadi stressed that no transaction can proceed unless the National Assembly approves it. If MPs reject the proposal, “the process ends completely.”

He assured Kenyans that the Treasury is required by law to provide comprehensive reports once funds are received and the transaction is completed.