State explains why disposal of strategic corporations is necessary to free up funds for reinvestment
Energy Principal Secretary Alex Wachira has urged Kenyans to rally behind the government’s divestiture programme saying the initiative would unlock funding needed to expand electricity access under the Last Mile Connectivity Project, among other projects.
Wachira explained that proceeds from the divestiture that include the sale of shares in companies such as Safaricom would help the government service foreign loans and free up resources to connect more households to the national grid.
Speaking during a public engagement forum at chief’s office in Ganda Ward in Malindi, Wachira said electricity remained a critical enabler of development, noting that demand was rising sharply across the country.
“Electricity is the key enabler of rural transformation. It opens up villages economically and gives people dignity,” he said.
He announced that the government had allocated Ksh2.2 billion ($17 million) to connect 25,359 households in Kilifi County with Malindi constituency allocated Ksh195 million ($1.52 million) to connect 2,304 households.
This, he said, was part of a countrywide project being implemented through funding from the Agence Française de Développement (AFD), European Union (EU), European Investment Bank (EIB), Japan International Cooperation Agency (JICA) and the government of Kenya through the Rural Electrification and Renewable Energy Corporation (REREC).
Wachira pointed out that access to electricity was transforming lives and cited the example of a young man in Mashamba village who has opened a barbershop thanks to power supply, while others are investing in irrigation systems and small enterprises.
The principal secretary, accompanied by Malindi MP Amina Mnyazi and Managing Director of Rural Electrification and Renewable Energy Corporation (REREC) Rose Mkalama had earlier launched last mile projects at Mashamba and Fundi Hamisi villages in Ganda Ward.
Early this week, Kenya Pipeline Corporation launched an Electronic Initial Public Offer (E-IPO) to sell more than 11.81 billion shares worth about Ksh163.6 billion ($1.3 billion) to Kenyans.
The government’s plan to offload 15 per cent of its stake in Safaricom to South Africa’s Vodacom for approximately Ksh204.3 billion ($1.583 billion) is in progress, but it has faced opposition from among others Kiharu Member of Parliament Ndindi Nyoro, who claims the shares have been grossly undervalued.
MP Mnyazi welcomed last mile connectivity project in her constituency noting that projects in Ganda, Malindi Town and Shella wards are already underway at various stages of completion.
However, she noted that more needed to be done, pointing out that 15 sites in Jilore Ward, 17 in Ganda Ward and seven in Malindi Town and Shella remain without electricity. She called for increased allocations from the Equalisation Fund to address the gaps.
“This project is a game-changer for our people. We have already launched projects in Ganda, Malindi Town Ward and Shella. Two are complete and one is at 70 per cent done,” she said.
Residents expressed relief and optimism, saying electricity had already reduced crime and created opportunities for youth.
Ms Florence Fumbi, a village elder in Mashamba, said darkness had fuelled theft and insecurity for years, but with 360 families now connected, the community felt safer. One Nyiro Nguma Kalama added that power would enable young people to start small businesses, while those with boreholes can venture into irrigation farming and maize milling.
- A Tell Media / KNA report / Emmanuel Masha and Martin Mwangolo






