“It’s financially illiterate to think privatization will make anything profitable,” Miguna clash with Ichun’gwah over sale of parastatals
3 min read
Miguna Miguna call out National Assembly Majority Leader Kimani Ichung'wah for defending of privatization of KICC and other state parastatals
Miguna Miguna call out National Assembly Majority Leader Kimani Ichung’wah for defending of privatization of KICC and other state parastatals.
Lawyer Miguna Miguna on Thursday, November 30 clashed with National Assembly Majority leader Kimani Ichung’wah over the government’s move to privatize the Kenya International Conference Centre (KICC).
Speaking on Wednesday, Ichung’wah defended the government’s plans describing the plans as a shrewd move that would enable the companies to realise their true potential.
He said people who are complaining about the sale of KICC are oozing ignorance.
The Kikuyu MP asked the public to read the Privatisation Act which spells out how the government will divest from past investments.
“I have heard a lot of people speaking on how the government is selling off assets. Ignorantly, people are not looking at the Privatisation Act which we passed here as the Privatisation Bill three of four months ago,” said Ichung’wah.
He went on to say KICC is at a prime location and can generate more money if it leases to a chain of hotels that could run the building and convert it into a hotel.
“90 percent of tenancy at KICC is parliament which is paying peanuts because it is government to government, but this is a prime location in the Central Business District.
“If KICC was for instance leased to a hotel chain that can convert the whole building into a hotel you can imagine the money the government will be able to generate,” Ichung’wah added.
However, Miguna told of Ichung’wah saying the government does not need to sell parastatals to make them profitable.
“Governments all over the world run profitable hotels, banks, and other enterprises. Nothing stops the government from leasing KICC space to private enterprises at a profit. However, ownership must remain public,” Miguna said in a statement.
Dennis Itumbi responds after the arrest of Nuru Okanga for insulting President Ruto
Ruto awards hustler fund borrowers with 50% of their savings as he increases loan limit
Ruto drops cap on NHIF contributions exposing workers to higher deductions
Kenyans struggling to meet their debt obligations; Report
Ruto secures another loan of Ksh 12.3b from AfDB
“You don’t have to sell parastatals to make them profitable. You have to hire competent and incorruptible managers to run them. The GoK sold KQ, Uchumi, KBS, etc. to oligarchs for a song, then continued to plunder them to bankruptcy. Privatization doesn’t necessarily result in the profitability of enterprises,” he stated.
Miguna also observed that many private companies in Kenya have collapsed due to mismanagement.
“It’s financially illiterate to argue that privatization makes anything profitable. Show us one profitable public enterprise you have privatized. Just one,” the vocal lawyer added.
KICC is among the eleven state agencies that the government has lined up for sale.
Others are; Kenya Literature Bureau, National Oil Corporation, Kenya Seed Company Limited, Mwea Rice Mills, Western Kenya Rice Mills Limited, and Kenya Pipeline Company.
New Kenya Cooperative Creameries, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, and Numerical Machining Complex have also been put up for sale.
Also read,
Government responds after passengers overpower police after protests break out at JKIA (VIDEO)
Nuru Okanga charged with insulting President Ruto after his arrest
Moi University management to engage local residents demanding the resignation of VC Kosgey
NYS announces Job opportunities for its graduates in the UK, Link to apply
Follow us
