Kenya is debating the plan to sell part of the government’s stake in Safaricom. The discussion is loud and emotional. Yet the most important questions remain buried. Many people focus on whether the sale is wise or reckless. Others highlight political motives and ignore the deeper issues shaping the country’s financial future.
One key concern stands out. How will the government spend the proceeds, and who will authorise that spending? Another critical question follows. Is the infrastructure fund a genuine long term investment plan, or simply a temporary holding place for cash from privatisations? These uncertainties expose a larger problem that the public has not addressed.
Signals Pointing to the Temasek Playbook
A senior contact at the National Treasury declined an off-the-record discussion but later sent a document titled By Generations, For Generations: 50 Years of Temasek. That gesture carried meaning. Temasek Holdings helped Singapore achieve one of the world’s most successful economic transformations.
Recent actions by Kenya’s government reflect this model. The President has spoken about creating a sovereign wealth fund, and the new Government Owned Enterprises Act supports that shift. Together, these steps reveal a deliberate pattern. The country appears to be following Singapore’s development logic, even if unintentionally.
Governments under fiscal pressure often choose similar tools. Sovereign funds and state-holding companies help raise capital, improve asset management, and support infrastructure spending. Even former U.S. President Donald Trump proposed a sovereign fund built from tariff revenues to finance major national projects.
The GOE Act and Kenya’s Quiet Transformation
The President’s approval of the GOE Act, 2025 marked a major turning point. Few people discussed it, yet it changed how State enterprises operate. The law repealed the Acts that created major commercial parastatals such as KenGen, KPA, and KETRACO. These institutions will now run under the Companies Act, with the State owning them through shares rather than statute.
This shift reflects corporatisation. Ministries lose direct control, and boards take centre stage. The new structure also makes privatisation easier. Equity sales no longer require Parliament’s approval, creating a faster and more administrative process.
Kenya Needs a Serious Debate
Such sweeping reforms call for deeper national discussion. Temasek did not succeed by chance. Singapore removed political interference from commercial enterprises and placed ownership under one shareholder acting as an investor. Strict performance standards guided every decision, and accountability remained firm.
These lessons matter today. Kenya must decide whether it is adopting this discipline or merely copying the language of sovereign investment without its structure.
What Kind of Fund Does Kenya Want?
Public participation on the Safaricom sale and the infrastructure fund has begun. The nation must now shift the conversation. The real issue lies not in the sale itself but in the institution built with the proceeds.
A well designed infrastructure fund can operate as an independent national investment body. A weak one may end up as a temporary holding account for unpredictable cash inflows. The outcome depends on strong rules and governance.
The original 2014 Sovereign Wealth Fund Bill offers useful guidance. It aligned with global best practice, followed the Santiago Principles, and aimed to build a fund protected from politics. Later Treasury changes weakened this vision, turning the concept into something closer to a special account that could be dissolved easily.
Who Will Control the Money?
One final question carries the most weight. Who will control the infrastructure fund? Cabinet may seek oversight. Parliament may demand authority. A professional board may provide independence.
Poor governance could turn the fund into a political cashbox fed by selling national assets. Robust safeguards could protect it for future generations. Kenya stands at a defining moment. The country must choose between a long-term investment institution or a short term political tool. The decision will shape the nation’s future for decades.
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