Treasury and National Planning Cabinet Secretary John Mbadi has called on Kenyans to support bold economic reforms, saying they are essential for long-term national growth and stability. Speaking during a fundraising event in Homa Bay, Mbadi defended the government’s plan to privatize select state corporations, describing it as a strategic move designed to drive sustainable development.
He clarified that the privatization exercise is not a short-term plan to plug budget deficits, but rather part of a broader economic transformation agenda. “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.
The Treasury CS dismissed claims that proceeds from privatization would be used to fund recurrent expenditures such as salaries or administrative costs. Instead, he emphasized that all proceeds will be directed toward national development initiatives.
To ensure transparency and proper management of funds, Mbadi announced that the government will establish two key institutions the Sovereign Wealth Fund and the National Infrastructure Fund. These bodies will manage and channel privatization proceeds into strategic infrastructure and development projects across the country.
“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 stated.
Mbadi also revealed that the government will embark on a nationwide public participation exercise to educate citizens on the privatization strategy. He noted that public understanding and engagement are vital to the successful implementation of the reforms.
The Treasury CS reaffirmed that Kenya’s path to sustainable growth depends on courageous and forward-looking economic decisions, urging citizens to support the government’s reform agenda for the benefit of future generations.
