Members of Parliament have urged the national government to focus on stopping wastage and mismanagement of public funds as a way to raise money for important development projects instead of selling profitable state corporations.
The call came during a session with Treasury Cabinet Secretary John Mbadi, who was defending the government’s proposal to privatize the Kenya Pipeline Company (KPC).
Mbadi told MPs that the plan, outlined in Sessional Paper No. 2 of 2025, is part of a wider budget-raising strategy expected to generate about Sh100 billion. He said the funds are urgently needed to keep key projects running and avoid delays caused by a lack of resources.
“Raising taxes at this point is not an option,” Mbadi said, adding that privatization would give the government financial breathing room without putting extra burden on taxpayers.
However, several MPs opposed the move, arguing that the government could save the money it needs by sealing loopholes and cutting wastage within ministries and agencies. They suggested better fiscal discipline as a long-term solution instead of selling a profitable and strategic company like KPC.
In response, Mbadi said the Treasury has already introduced reforms to reduce waste, including e-procurement systems and stricter accountability measures to ensure public money is used properly.
“These measures will go a long way in reducing unnecessary expenditure across government operations,” he noted.
The proposal to privatize KPC is now before Parliament and has been referred to the joint committees on Energy and on Public Debt and Privatization. Lawmakers are expected to weigh the financial gains outlined by the Treasury against the strategic importance of keeping KPC under government control.
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