Members of Parliament have called on the National Government to prioritize curbing wastage and mismanagement of public funds as a way of raising resources for critical national programmes and development projects.
The lawmakers made the appeal during an engagement session with Treasury Cabinet Secretary Hon. John Mbadi, where the he was defending government’s proposal to privatize the Kenya Pipeline Company (KPC).
Mbadi told the legislators that the privatization move, outlined in Sessional Paper No. 2 of 2025, is part of the government’s approved budget-raising measures aimed at generating approximately KSh 100 billion.
The funds, he said, are crucial to support budget implementation and ensure that key development projects are not stalled due to a shortage of funds.
“Raising taxes at this point is not an option,” the CS said, emphasizing that privatization would provide the much-needed fiscal space without overburdening taxpayers.However, MPs argued that the government could avoid selling off strategic state corporations by addressing inefficiencies and financial leakages within ministries, departments, and agencies.
They proposed enhanced fiscal discipline as a more sustainable approach instead of rushing to disposs of a self sustaining and profit making company like KPC.
Responding to these concerns, Mbadi said that Treasury has already put in place several reforms to curb wastage.
These include the adoption of e-procurement systems and the introduction of robust accountability mechanisms to ensure proper utilization of public resources.
“These measures will go a long way in reducing unnecessary expenditure across government operations,” Mbadi stated.The proposal to privatize KPC has already been formally tabled in Parliament, and committed to the joint committee on Energy and that of public debt and privatization for consideration.
The Legislators are expected to weigh the fiscal benefits as outlined by treasury against the strategic value of retaining government control over the company.