Treasury and National Planning Cabinet Secretary John Mbadi has defended the government’s decision to privatize select state corporations, saying the move is part of a long-term strategy to drive national development.
Speaking during a fundraising event in Homa Bay, Mbadi said the initiative is not a short-term measure to finance the national budget.
He emphasized that for the country to achieve sustainable growth, the government must adopt bold and innovative policies that may initially appear unpopular but will yield long-term benefits.
“For a country to develop, there must be new ideas. We must take pragmatic steps and make bold decisions that may seem unpopular in the short run but will be appreciated in the long run,” Mbadi said.
He dismissed claims that the ongoing privatization of parastatals is aimed at bridging budget deficits, insisting that the process is focused on promoting sustainable development.
“Some people think we are privatizing parastatals to support or finance our budget. That is not the direction we are taking as a government,” he clarified.
Mbadi announced that the government will establish two key institutions—the Sovereign Wealth Fund and the National Infrastructure Fund—to ensure transparency and accountability in managing proceeds from privatization.
“All proceeds from privatization will go into these funds. We will not use the money to pay salaries or finance recurrent expenditures. It will be dedicated to infrastructure projects,” he said.
He added that the government will conduct a nationwide public participation exercise to sensitize and inform citizens about the privatization strategy.
The CS also urged Kenyans to embrace self-reliance, noting that reliance on external lenders such as the IMF and World Bank was becoming unsustainable amid global economic challenges.
“There is no international financing anymore. Every country, even in Europe, is facing its own challenges. It is upon us to think about how to develop our own country,” he stated.
Mbadi further appealed for unity within the Luo community, saying he is committed to upholding the legacy of ODM leader Raila Odinga.
“I am ready to take the Luo community to Canaan. No one should worry about who will fit into Raila’s shoes after him. I will carry on his legacy,” he said.
Awendo Member of Parliament Walter Owino, who accompanied the CS, echoed his sentiments, describing Mr Mbadi as an experienced and visionary leader.
“Based on his experience, sacrifice, and vision, Mbadi is well suited to lead. He has served as ODM chairman for over 10 years, an MP for 17 years, a minority leader, and now holds one of the most critical roles in government,” Mr Owino said.