The ghost of the Mobitelea scandal has returned to haunt the Treasury’s latest privatization plans, with Suba South MP Caroli Omondi warning that the proposed sale of Safaricom shares is a potential breeding ground for elite corruption.

Speaking at the launch of the Okoa Uchumi report in Nairobi, Omondi argued that bypassing the Nairobi Securities Exchange (NSE) in favor of an "enhanced strategic sale" threatens to deepen Kenya's wealth gap, handing a crown jewel of the economy to a select few rather than the wananchi.

The Mobitelea Shadow

Omondi’s critique was not merely technical; it was historical. He drew a sharp parallel between the current proposal and the opaque dealings of the early 2000s involving Mobitelea Ventures—a mysterious entity that once held a significant chunk of the telco.

“There was a sweetheart deal between the elites of the time and Vodafone. Mobitelea was a front for Kenyan politicians,” Omondi recalled, referring to the shell company that quietly exited the shareholder register amid public outcry. “We should ask what happened to those shares.”

The MP cautioned that the government’s current trajectory risks repeating this history. By opting for a strategic investor model, the Treasury effectively limits who can buy the state's stake, potentially concentrating economic power in foreign or politically connected hands.

A Question of Equity

The lawmaker emphasized that Safaricom was built on the back of taxpayer resources and its divestiture should reflect that public heritage. He proposed that any sale of government stakes should be conducted openly through the NSE to broaden local ownership.

Omondi supported his argument with stark statistics on inequality:

• Wealth Concentration: He noted that 1% of Kenyans currently control approximately 78% of the country's financial resources.
• Strategic Redundancy: With Vodafone already serving as a strategic partner, Omondi questioned the logic of bringing in another dominant player rather than empowering local retail investors.

“Why concentrate more resources into [a single investor's] hands?” he posed, challenging the Treasury's rationale.

Pipeline vs. Safaricom

To illustrate his point on strategic mismanagement, Omondi contrasted the Safaricom plan with the Kenya Pipeline Company (KPC) divestiture. He argued that while KPC actually needed a strategic partner to expand into gas distribution and regional lines, the government is treating Safaricom—a company that is already a market leader—as a distress sale.

For Omondi, the path forward is clear: transparency over expediency. “We must ensure fairness in the process,” he concluded, signaling a looming parliamentary showdown over the privatization strategy.