President William Ruto recently disclosed his intentions to privatize around 350 state-owned companies, aiming to rein in government spending.
At the Kenya Diaspora Investment Conference, he highlighted the financial strain these entities impose on the national budget and stressed the urgency of embracing fiscal responsibility.
“We are spending billions sustaining companies.
We have 350 public entities that just take money from the budget, we are supporting them.
Some of them, nobody can tell you what they are doing,” Ruto stated emphatically.
Acknowledging the difficulty of this decision, he assured the public that he would face the consequences for the greater good of Kenya’s progress.
“It is a very difficult decision to make, but I will make the decision, I promise you.
I will make the decision and take the consequences because Kenya must move.
You can never go wrong by doing the right thing,” he asserted.
President Ruto disclosed that a report recommending the removal of approximately 150 companies had been prepared years ago, emphasizing the need to execute these decisions promptly.
He believes that selling some of these entities to the private sector could unlock greater value.
“Some of those things we are going to make decisions, and by the way, a report was already done saying these companies, about 150 of them, should be removed; that what they are doing can be done by the private sector.
In fact, selling some of these companies to the private sector would give more value out of them,” he explained.
The National Treasury and Economic Planning Ministry had previously issued a public notice in November, identifying state-owned enterprises like the Kenyatta International Convention Centre (KICC), the Kenya Pipeline Company (KPC), and the New Kenya Cooperative Creameries (KCC) for privatization.
This move aligns with the Privatisation Act 2023 Section 21 (1), empowering the Treasury Cabinet Secretary to designate entities for the Privatisation Programme.
Furthermore, the 2023 Privatisation Programme is set to include other parastatals like the Kenya Literature Bureau (KLB), National Oil Corporation of Kenya (NOCK), Kenya Seed Company Limited (KSC), and Mwea Rice Mills Ltd (MRM).
President Ruto remains resolute in his commitment to making tough decisions for the benefit of Kenya’s economic progress.
President Ruto Ready To Face Consequences Of Privatising 350 State Companies, President Ruto Ready To Face Consequences Of Privatising 350 State Companies
