The United Opposition opposed the proposed National Infrastructure Fund Bill, 2026 and Sessional Paper No. 3 of 2025, which seeks the partial divestiture of the Government of Kenya’s stake in Safaricom PLC, terming the twin proposals a “co-ordinated assault” on constitutional public finance safeguards and strategic national assets.
In a press statement issued Thursday, the opposition outfit urged Parliament to reject both measures, arguing that they pose serious governance, fiscal, and national security risks.
The group described the proposed National Infrastructure Fund as “a solution in search of a problem,” arguing that Kenya’s infrastructure challenges stem not from lack of financing vehicles but from “execution failure, procurement corruption, and fiscal opacity.”
Citing Article 206 of the Constitution, which requires all public revenue to flow through the Consolidated Fund and be subject to parliamentary appropriation, the statement warned that the proposed fund could operate as a semi-autonomous entity outside proper legislative oversight.
The opposition further referenced a sworn affidavit reportedly filed by Treasury Cabinet Secretary John Mbadi at the Milimani High Court, claiming he admitted that the Sh5 trillion National Infrastructure Fund was not a constitutional public fund but a limited liability company that had not yet been incorporated at the time of parliamentary representations.
According to the United Alternative Government, Parliament must summon the CS to reconcile the discrepancy, arguing that legislation cannot proceed on what it termed “misleading information of the highest fiscal consequence.”
Instead of creating a new fund, the group called for strengthening infrastructure bonds, reforming public-private partnership frameworks, rationalising the recurrent budget, and tightening procurement oversight.
On the proposed partial sale of the Government’s stake in Safaricom PLC, the opposition described the move as equivalent to “selling the country’s most productive farm to pay for groceries.”
Safaricom, East Africa’s most profitable telecommunications firm and the operator of M-PESA, paid out billions of shillings in dividends in the last financial year, with a significant portion accruing to the Government as a shareholder.
The group argued that reducing state ownership without strict safeguards could expose the country’s digital payments infrastructure and government service platforms to strategic risks.
Among the concerns raised were lack of clarity on who would be permitted to acquire divested shares, absence of disclosed national security assessments and no clear “golden share” protections for government and uncertainty over universal service obligations.
The opposition called for the immediate withdrawal of Sessional Paper No. 3 of 2025 pending an independent strategic asset review and full public participation hearings as required under Article 118 of the Constitution.
The statement also cited the earlier IPO of Kenya Pipeline Company as a cautionary example, alleging concerns over pricing, advisory processes, and retail investor participation.
It urged Parliament’s Public Investments Committee to conduct a comprehensive post-mortem of the IPO before approving any further state asset divestitures.
They demanded rejection of the National Infrastructure Fund Bill in its current form, independent constitutional review of the proposed fund, withdrawal of the Safaricom divestiture proposal and full publication of transaction advisory terms.
They also demanded a national security review of any reduced state shareholding and suspension of further government asset sales pending a Parliament-approved National Asset Management Policy
The opposition concluded that Kenya’s challenges are rooted in governance failures rather than institutional shortages.
“Kenya is not suffering from a shortage of institutions or financial instruments,” the statement read. “Kenya is suffering from a crisis of governance.”
The debate now shifts to the National Assembly, where both the Infrastructure Fund Bill and the Safaricom divestiture proposal are expected to face scrutiny in the coming weeks.
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