The Kenyan government is preparing to sell 10 state-owned companies, including the Kenya Ports Authority, as part of its privatization efforts.
This means transferring these businesses from government ownership to private hands.
The government has a list of 25 such companies that it wants to privatize through various methods, like selling them, giving them out on lease, or entering into concessions.
Out of these, 10 have been singled out and are waiting for approval from the Treasury Cabinet Secretary, Prof. Njuguna Ndung’u.
These include the Kenya Pipeline Company, Kenya Meat Commission, Consolidated Bank, and Development Bank of Kenya.
Additionally, five state-owned sugar mills, such as Chemilil, Sony, Nzoia, Miwani, and Muhoroni, will be leased, and some government-owned hotels will also be part of this process.
The government is also planning to reduce its ownership in companies like KenGen, East Africa Portland Cement, and the National Bank of Kenya.
This move comes shortly after President William Ruto signed the Privatization Bill 2023 into law during his visit to the Nyanza region.
This law paves the way for privatization which has been delayed for some time.
President Ruto stated, “I have committed that between five and 10 public enterprises that are mature should be listed in the next 12 months.
I expect that the private sector will work with the capital markets so that we can have private sector companies also list on the stock exchange”
Molo MP Kimani Kuria, who led the public participation process for the Privatization Bill 2023, emphasized that the heads of the first set of companies going through privatization must provide full financial reports according to the new law.
“Those that will not comply risk a penalty of up to 5 and 10 million shillings,” said Kuria.
In addition, Cabinet Secretary Ndung’u will appoint a nine-member board for the newly established Privatization Authority.
“They need to have 10 years of experience in financial matters so that we have competent officers,” said Kuria.
However, some opposition leaders remain skeptical of the privatization program.
They believe it lacks sufficient oversight and could lead to problems similar to those in the past.
Minority Leader Opiyo Wandayi questioned the program’s credibility and transparency, asking, “What will stop the new managers from repeating the same mistakes? We must deal with past historical injustices.
Perpetrators of sugar industry collapse initiated economic sabotage”
Azimio la Umoja leader Raila Odinga expressed strong opposition to the privatization of the Port of Mombasa.
“We as Azimio vehemently oppose the Privatization of the Port of Mombasa,” Raila Odinga said previously.
It’s worth noting that in the 1990s and 2000s, Kenya Airways, Uchumi Supermarkets, General Motors, Firestone, and Mumias Sugar Limited were among the companies that underwent privatization.
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