Ruto cabinet resolves to sell shares in six state parastatals listed in NSE
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Cabinet adopts plan to sell its shares in six Nairobi Securities Exchange-listed state parastatals in a move aimed at facilitating a sustained economic recovery
Cabinet adopts plan to sell its shares in six Nairobi Securities Exchange-listed state parastatals in a move aimed at facilitating a sustained economic recovery.
President William Ruto’s administration has resolved to sell shares in six key institutions as part of an ambitious plan to reshape state agencies.
The resolution was made following a Cabinet meeting on Tuesday chaired by President William Ruto.
The six state parastatals are; East African Portland Cement Limited where the government and the NSSF collectively own a majority share of 52.3%, the Nairobi Securities Exchange (NSE) where the State possesses a 3.6% stake, and the Housing Finance Company where the government owns 2.41% shares.
The others comprise; Stanbic Holdings, where the government owns 1.1% share, Liberty Kenya Holdings, in which the State holds 0.9% shares, and Eveready East Africa PLC where the State wields 17.2% shares through the Kenya Development Corporation (KDC).
“As part of the institutional reforms aimed at fostering a sustained turnaround of the economy, and particularly the management and governance of State Corporations, the Cabinet has considered and approved the proposed divestiture of the State’s shareholding in six listed companies,” read a despatch to newsrooms after the meeting.
“The divestiture in the six companies, through the sale of shares at the Nairobi Securities Exchange, will optimize the contributions of these investments in the realization of our national development aspirations.”
The government plans to shut down 25 state parastatals and transition another 25 to private sector management as part of this reform. The goal is to curb wasteful expenditure and ease the financial strain on the exchequer caused by non-performing state enterprises.
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Cabinet also directed organizations such as coffee cooperatives and SACCOs, along with other creditors, to provide the Ministry for Co-operatives with a list of all farmers who owe them money, and all the necessary supporting documents, within seven days to facilitate the payments to the creditors.
“Any fraudulent and fictitious claims will be dealt with in accordance with the law,” the Cabinet warned.
The Cabinet also urged Parliament to fast-track the enactment of governance reforms for cooperatives to establish institutional safeguards, including the requirement that the process of borrowing by cooperatives is only authorized by farmers during Annual General Meetings (AGMs).
“To further bolster the coffee production value chain, the New Kenya Planters Cooperative Union (KPCU) will undergo modernization in accordance with international best practices,” the Cabinet said.
“Additionally, to address the concerns on the quality of coffee parchments, modern eco-pulpers will be established in all emerging coffee growing areas for primary processing, enhancing efficiency and sustainability of the sub-sector.”
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