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Privatisation Act Struck Down: Court Rules KICC Sale Violates Constitution

September 25, 2024

On Tuesday, the High Court in Nairobi ruled the Privatisation Act 2023 unconstitutional, citing significant loopholes in the legislation. Justice Chacha Mwita emphasized that the Act cannot operate due to a lack of meaningful public participation prior to its enactment.

He agreed with the Orange Democratic Movement (ODM), which filed the lawsuit, stating that the public was not afforded the opportunity to express their views on the Act. This absence of public input facilitated the sale of state enterprises to private companies.

“The Constitution is the supreme law, and public involvement in participation is essential. The National Assembly does not do the public a favor by inviting them to engage,” the court declared.

Furthermore, the court ruled that the Kenyatta International Convention Centre (KICC) is a national monument and a symbol of national heritage, and its proposed sale would violate constitutional and cultural rights.

“KICC is a national monument that requires protection, and the decision to privatize it is unconstitutional, null, and void,” Judge Mwita stated.

In December of last year, the ODM party challenged the government’s decision to privatize six out of eleven parastatals, including KICC, Kenya Pipeline Company (KPC), and New Kenya Cooperative Creameries Limited (New KCC). Through advocate Jackson Awele, ODM argued that privatization of these assets requires public consent via a referendum, as they represent part of Kenya’s sovereign wealth and hold significant cultural and strategic importance.



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