Kenya Plans To Revive Privatisation Of KICC, 10 Other Entities To Appease IMF
President William Ruto’s administration has announced plans to restart the privatization of eleven state-owned institutions, including the Kenyatta International Convention Centre (KICC).
In its submissions to the International Monetary Fund (IMF), the Ministry of Treasury stated that it would appeal the High Court’s decision declaring the Privatisation Act 2023 unconstitutional.
While addressing the Bretton Woods Institution, the National Treasury announced that it had begun the process of reevaluating seventy government entities for liquidation, privatization, or reintegration.
“The authorities have undertaken financial evaluations of seventy State Corporations based on their FY2022/23 accounts, providing specific recommendations and actions for each State Corporation,” read part of the IMF report.
The High Court has thrown out the Privatisation Act, 2023 on the grounds of being unconstitutional & therefore null & void.
— Julians Amboko (@AmbokoJH) September 24, 2024
Again, the question of public participation is at the core of this nullification.
It's an extremely huge development especially with regard to Kenya's… pic.twitter.com/O6QbSvWDcC
“The National Treasury has submitted a policy paper to the Cabinet recommending the consolidation, dissolution/privatization, or reintegration into the line ministries of several State Corporations.”
“In the 2024/2025 financial year, the authorities have launched efforts at generating more revenues for the national exchequer through the State Corporations including better management and reporting of revenues and stricter implementation of the remittance of dividends,” the report added.
On September 24, the High Court in Nairobi declared the Act unconstitutional and thus illegal, concluding that the piece of legislation was not subject to adequate public participation.
“The Constitution is the supreme law, and the public must be involved in public participation. The National Assembly does not do the public a favour by inviting them to participate,” the court pronounced.
In its decision, the court also stated that the KICC was a national monument and symbol of national heritage and that its proposed sale violated constitutional and cultural rights.
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The Kenya Literature Bureau (KLB), KICC, National Oil Corporation (NOC), Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Limited will be sold under the Privatisation Act of 2023.
Other companies listed for sale include Kenya Pipeline Company (KPC), New Kenya Cooperative Creameries (KCC), Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, and Numerical Machining Complex.
In a cabinet dispatch issued on November 23, 2023, the government revealed that one of the reasons it was selling the Kenya Literature Bureau and KICC was because the two parastatals had to be incorporated into limited companies.
The government went on to say that the other institutions were being privatised primarily due to poor financial performance, having consistently posted huge losses.
Kenya Plans To Revive Privatisation Of KICC, 10 Other Entities To Appease IMF
