Govt to Sell KICC, Kenya Pipeline & 9 Other Parastatals
On Monday, the National Government declared eleven parastatals to be placed up for auction.
Kenya Literature Bureau (KLB), Kenyatta International Convention Centre (KICC), National Oil Corporation (NOC), Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Limited are among the organizations that will be sold via the privatization program.
Kenya Pipeline Company, New Kenya Cooperative Creameries, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, and Numerical Machining Complex are additional organizations that the government is attempting to sell.
The government disclosed in a dispatch that the Kenya Literature Bureau and KICC were being sold in part because the two parastatals required incorporation into limited liability corporations.
However, NOC is undergoing privatization primarily due to its inadequate financial performance after consistently incurring substantial losses.
Additionally, the government is considering divesting from the corporation due to its negative working capital and inadequate liquidity.
The Kenya Seed Company, led by former Kirinyaga Woman Representative Purity Ngirici, recognized the readiness of the sector to be divested to the private sector as a lucrative and developed industry.
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Other mature enterprises that were deemed to need sale included Kenya Vehicle Manufacturers Limited and the Mwea and Western Kenya rice mills.
The government additionally disclosed in the divesting blueprint its intention to divest the New Kenya Cooperative Creameries due to the organization’s substantial potential and its history of cyclical performance.
To attract capital and expertise from the private sector, the apparel manufacturer Rivatex was designated for sale. Additionally, the necessity to reduce reliance on Government of Kenya (GOK) funding influences the sale.
Furthermore, Rivatex was recognized as a loss-making organization that was dependent on GOK for financial assistance with recurring and development expenses.
The government declared that the Kenya Pipeline’s sale was facilitated, in part, by monopolistic characteristics manifested in the market’s absence of competition.
Additionally, the administration of President William Ruto stated that the ongoing legal proceedings about the organization had influenced the determination to privatize it.
Govt to Sell KICC, Kenya Pipeline & 9 Other Parastatals