Government Unveils List of 11 Parastatals Set for Privatization

November 28, 2023

The National Treasury and Economic Planning Ministry has declared that the Kenyatta International Convention Centre (KICC) is one of 11 government parastatals slated for privatization.

In a public notice released on Monday, the exchequer stated that the proposal aligns with the Privatisation Act of 2023, Section 21(1), which mandates the Treasury Cabinet Secretary to identify and designate entities for inclusion in the Privatisation Programme.

This comes in the wake of President William Ruto’s announcement on Thursday of the government’s preparedness to privatize 35 state-owned companies.

Additional parastatals slated to join the 2023 Privatisation Programme include the Kenya Pipeline Company (KPC), New Kenya Cooperative Creameries (KCC), Kenya Literature Bureau (KLB), National Oil Corporation of Kenya (NOCK), Kenya Seed Company Limited (KSC), and Mwea Rice Mills Ltd (MRM).

The list also comprises Western Kenya Rice Mills Ltd (WKRM), Numerical Machining Complex Limited (NMC), 35% of Vehicle Manufacturers Limited (KVM), and Rivatex East Africa Limited (REAL).

The notice further indicates that a 9-step criterion was employed in selecting the aforementioned parastatals. These criteria include:

  1. Relevance to government policies regarding privatization.
  2. Alignment with strategic priorities and policy goals set for privatization.
  3. The strategic significance of the public entity earmarked for privatization.
  4. Prevention of privatization leading to an unregulated monopoly.
  5. Avoidance of privatization resulting in new owners receiving special protection or credit access on concessional terms due to the National Government’s sovereign status.
  6. Assessment of necessary regulatory adjustments.
  7. The imperative to reduce the budgetary burden on government resources.
  8. Anticipated benefits from the proposed privatization.
  9. Consideration of any other pertinent factors.

The public has been invited to provide written comments or input on the Privatisation Programme.

Submissions can be made electronically to [email protected] or through postal delivery or hand-delivered to the Harambee Avenue, Treasury Building. The deadline for submissions is the close of business on December 11, 2023.

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