The President maintained the privatisation approach of the government, which was an event he defended on Friday, during an engagement with graduate interns undertaken under the Affordable Housing Programme, at State House Nairobi, and indicated that it was a calculated and open move meant to mobilize resources to carry out massive national development.
He stated that the government had accepted that divestiture could be a wise means of accessing capital and at the same time increasing the ownership of the people in strategic assets. He gave the example of Kenya Pipeline Company first time sale of shares and the sale of shares in Safaricom.
He mentioned that the Kenya Pipeline IPO and a subsequent Ksh.240 billion of partial divestiture of Safaricom were expected to bring a Ksh.110 billion and Ksh.3 trillion respectively to the government, which he indicated would be used to unlock a Ksh.3 trillion and Ksh.4 trillion respectively of funds to be used in development projects.
"I want to tell those who people giving us lectures about what we're doing with the IPO in KPC or Safaricom, they should spare us their political conmanship and intellectual deceit."
The president was also optimistic that his administration would mange to increase Ksh.5 trillion within the next year in order to embark on the task of turning Kenya into a first-world country.
His comments were a direct reply to the questions that Ndindi Nyoro expressed before the Joint Committee on Finance and Privatisation on Tuesday, January 20.
The Kiharu MP sounded an alert that the nation will lose billions of shillings by not taking the sale of the Safaricom shares through a competitive international bid process.
According to Nyoro, every six billion shares of Safaricom that would be sold should fetch Ksh.45 per share instead of Ksh.34 per share because according to him the asset they were offering was undervalued.
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