Ruto to sell parastatals without parliament approval
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Ruto approves the Privatisation Bill that allows the government to sell non-performing parastatals without approval from parliament
Ruto approves the Privatisation Bill that allows the government to sell non-performing parastatals without approval from parliament.
President William Ruto has supported the Privatisation Bill, 2023, which was approved by the Cabinet on Tuesday.
In a dispatch from the State House, Cabinet outlined the benefits of the new bill that will repeal the Privatisation Act, of 2005.
“The Cabinet has approved the Privatisation Bill, 2023, which will repeal the Privatisation Act, 2005. This law ushers in a more facilitative and non-inhibiting legal and policy framework that will oversee privatization in the country.
“The proposed Bill gives power to the Treasury to privatize public-owned enterprises without the bureaucratic approvals of Parliament,” the dispatch read.
The bill will provide the Treasury unrestricted authority to privatize publicly owned companies without obtaining the consent of Parliament.
The sale of non-strategic, underperforming public enterprises will aid in the improvement of infrastructure enhancements and service delivery to Kenyans, according to the Cabinet, which has characterized the procedure for obtaining the legislators’ approval as cumbersome.
The Privatisation Commission, which will become the Privatisation Authority if the changes are approved, has expressed concern about the Treasury Cabinet Secretary appointing members of the Privatisation Authority without parliamentary oversight, contending that it would pose a threat to the authority’s independence.
The Privatisation Act of 2005 requires the Treasury Cabinet Secretary to appoint members to the commission through a competitive process and approval by the parliament.
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The Privatisation Commission has lined up 25 entities for state divestiture including the Kenya Pipeline Company, the Kenya Ports Authority, the Kenya Tourist Development Corporation, the Consolidated Bank, the Development Bank of Kenya and the Agrochemical and Food Corporation.
The list also has ailing state millers Chemilil Sugar, South Nyanza, Nzoia, Miwani and Muhoroni.
The programme also proposes further share divestitures by the government in listed firms, including KenGen, East Africa Portland Cement and the National Bank of Kenya.
Kenya’s privatisation history has had its fair share of controversy, with critics pointing to the process in the past being hijacked by well-connected individuals to snap up some of the state corporations for a song.
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