By James Mutua
The United Alternative Government has opposed two key proposals currently before Parliament, warning that they could undermine Kenya’s constitutional framework for public finance management and threaten the integrity of strategic national assets.
Addressing the press on Thursday, the coalition led by Wiper Patriotic Front party leader Hon Stephen Kalonzo, Democracy for the Citizens Party party leader Rigathi Gachagua, and DAP-K party leader Eugene Wamalwa called on the National Assembly to reject the National Infrastructure Fund Bill, 2026 and withdraw Sessional Paper No. 3 of 2025, which proposes the partial divestiture of the government’s stake in Safaricom PLC.
According to the group, the two proposals represent what it described as a coordinated attempt to weaken oversight of public finances while exposing critical national assets to potential mismanagement.
The coalition argued that the proposed National Infrastructure Fund risks bypassing the constitutional requirement that all public revenue pass through the Consolidated Fund and be subject to parliamentary appropriation.
Citing Article 206 of the Constitution, the opposition warned that the fund could become a semi-autonomous financial vehicle allowing senior government officials to deploy large amounts of public resources without sufficient parliamentary scrutiny.
The group also raised concerns about Treasury Cabinet Secretary John Mbadi, alleging that he misled Parliament regarding the legal status of the proposed Sh5 trillion fund.
According to the statement, an affidavit filed in court by Mbadi indicated that the entity being referenced as the National Infrastructure Fund was in fact structured as a limited liability company rather than a public fund as previously presented to lawmakers.
The coalition said Parliament should summon the Treasury CS to reconcile statements made before parliamentary committees with the affidavit submitted in court.
Beyond the legal concerns, the opposition said Kenya already has more than 60 public funds operating outside the Consolidated Fund, many of which have been flagged by oversight institutions for weak accountability and overlapping mandates.
Instead of creating another financial vehicle, the group urged the government to strengthen infrastructure financing through existing mechanisms such as infrastructure bonds, reforms to the public private partnership framework, and stronger procurement oversight.
The coalition also criticised plans to partially divest government ownership in Safaricom, describing the telecommunications giant as a strategic national asset.
Safaricom operates the widely used M-PESA mobile money platform and plays a central role in Kenya’s digital payments ecosystem, including government payment services through eCitizen and other national digital infrastructure.
According to the opposition, the government received significant revenue from the company’s dividends in the 2024 financial year, making it an important long-term income-generating asset.
The group warned that selling part of the state’s stake to address short-term fiscal pressures would amount to sacrificing long-term revenue for temporary budget relief.
It further argued that the Sessional Paper fails to clearly outline safeguards on who would be allowed to acquire the divested shares, raising potential national security concerns if foreign state-linked investors were permitted to purchase significant stakes.
Questions were also raised about whether the government would retain special control mechanisms and how universal service obligations would be protected if commercial shareholders gained greater influence.
The statement also referenced the recent initial public offering of Kenya Pipeline Company as a cautionary example of how state asset transactions can lose public confidence when transparency and competitive processes are questioned.
According to the coalition, concerns surrounding pricing, advisor selection and limited retail investor participation in the transaction have eroded trust in the government’s ability to manage strategic asset sales.
As part of its demands, the opposition called for the complete rejection of the National Infrastructure Fund Bill and an independent constitutional review of its compatibility with Article 206.
It also urged Parliament to require the Treasury to provide a full account of all existing extra-budgetary public funds before creating any new financial vehicle.
On the proposed Safaricom divestiture, the coalition demanded the withdrawal of the Sessional Paper pending an independent strategic asset review, full disclosure of transaction advisor engagements and a national security assessment of reduced state ownership.
The group also called for public participation hearings before any divestiture proposal is considered by Parliament.
The United Alternative Government said Kenya’s development challenges stem primarily from governance failures rather than a lack of financial instruments.
“Kenya is not suffering from a shortage of institutions or financial instruments. Kenya is suffering from a crisis of governance,” the coalition said, urging Parliament to prioritise fiscal discipline, transparency and the protection of long-term national interests.
