In the ongoing program initiated last year, the Cabinet, chaired by President William Ruto in a meeting at State House Nairobi on Wednesday, approved the privatization of at least seven State-Owned Enterprises (SOEs).
The move is aimed at unlocking the potential of these companies and securing the best value for the public.
The SOEs include the Development Bank of Kenya where the government is a majority shareholder with 89.3pc ownership with TransCentury owning the remaining 10.7pc.
“The decision by our nation’s apex policy-making organ was informed by the fact the Bank had transitioned into a fully-fledged Deposit-taking commercial bank regulated by the Central Bank of Kenya,” Cabinet Office said.
As of June 30, 2023, DBK, established in 1964, possessed total assets amounting to Kes.17.9 billion.
Affected hotels and lodges
The additional State-Owned Enterprises (SOEs) slated for sale include Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge, all operating under Kenya Safari Lodges and Hotels Limited, Golf Hotel Limited, Sunset Hotel Limited, Mt. Elgon Lodge Limited, and Kabarnet Hotel Limited.
The sale of shares in the above-mentioned SOEs is expected to help with the growth of the hospitality sector in the country.
“The move aligns with the ongoing rebound of the tourism sector that has been buoyed by the Visa-Free entry regime in Kenya and promises to deliver increased employment and business opportunities in both the divested Enterprises as well as across the entire tourism sector.”
