A Nairobi high court has issued an order to halt the proposed sale of state corporations, responding to a petition filed by the Orange Democratic Movement (ODM) party.
The ODM argued that the privatization act was unconstitutional as it lacked public participation.
The court, under Justice Chacha Mwita, issued a conservatory order suspending the implementation of Section 21 (1) of the Privatization Act 2023 until February 6, 2024.
This section of the act prevented the Cabinet Secretary from identifying and determining entities for privatization, impacting the plans of National Treasury Cabinet Secretary Prof. Njuguna Ndung’u to privatize 11 state parastatals.
Among those slated for sale were the Kenya Literature Bureau (KLB), Kenyatta International Convention Centre (KICC), Kenya Seed Company Limited, Kenya Pipeline Company (KPC), and New Kenya Co-operative Creameries (N-KCC).
In the court documents, ODM argued for a higher threshold of public participation and a national referendum for decisions involving the privatization of sovereign assets.
They emphasized the historical significance of these assets in shaping Kenya’s democracy and nationhood, asserting that they cannot be privatized without the people’s consent through a referendum.
Another petitioner, Peter Agoro, contended that international organizations such as the IMF and World Bank influenced parts of the Privatization Act, undermining Kenya’s sovereignty.
The court papers also highlighted concerns about the Act’s potential to diminish parliamentary authority and the absence of adequate security guarantees or checks and balances for the intended privatization programs as mandated by the Constitution.
Justice Chacha Mwita instructed ODM to serve their papers to the respondents, who are required to file their responses within five days. The submission of arguments by the involved parties is scheduled for February 6, 2024.
Kenneth Lusaka: Biography, Education, Career, Family, Controversies, And More
High Court Blocks Planned Sale Of State Corporations Following ODM Petition, High Court Blocks Planned Sale Of State Corporations Following ODM Petition
