The sale of 11 parastatals has been temporarily suspended by the High Court in response to a petition filed by Raila Odinga’s Orange Democratic Movement (ODM) party.
Some of the entities slated for privatization include the Kenyatta International Convention Centre (KICC), Kenya Pipeline Company (KPC), and the Kenya Literature Bureau (KLB).
In the petition, ODM contends that the state-owned companies slated for sale hold strategic significance for the people of Kenya and can only be privatized with the people’s consent, which should be obtained through a referendum.
High Court Judge Chacha Mwita on Monday determined that the ODM petition raises significant constitutional and legal issues of public importance, warranting thorough examination and consideration by the court.
The judge instructed the ODM party to serve the petition, along with court documents, to the Speaker of the National Assembly Moses Wetang’ula, Attorney General Justin Muturi, and Treasury Cabinet Secretary Prof Njuguna Ndung’u.
“A conservatory order is hereby issued suspending implementation of section 21(1) of the Privatization Act 2023 and or any decisions made pursuant to that section, until 6th February 2024,” the judge said.
The High Court suspended the sale of the parastatals until the hearing of the case scheduled for February 6, 2024.