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Ruto Halts Privatization Of 26 Companies (LIST)
On Monday, a cabinet meeting convened by President William Ruto reversed an earlier decision to privatize 26 government-owned companies.
Ruto reversed a ministerial decision made on August 12, 2009, to privatize the firms to raise capital for new investments and reduce the government’s involvement in business.
KenGen and Kenya Pipeline were included on the list of entities to be privatized.
Former President Uhuru Kenyatta, who was then the Minister of Finance, proclaimed at the time that the privatization of the two entities would increase transparency and corporate governance, as well as increase economic shareholding.
Uhuru argued further that privatizing KenGen and Kenya Pipeline would lead to the growth of capital markets and generate funds to support the government budget.
The Cabinet also approved the privatization of three Kenya Ports Authority entities, namely: -Eldoret Container Terminal, Outsourcing of Stevedoring Services, and Development of Berths No. 11-14: -KPA.
To increase Kenya’s regional competitiveness and facilitate investment and economic development, the three KPA entities were to be completely privatized.
The cabinet under former President Mwai Kibaki also consented to privatize Nzoia Sugar Company, South Nyanza Sugar Company Limited, Chemelil Sugar Company, Muhoroni Sugar Company Ltd, and Miwani Sugar Company Ltd.
Privatizing the loss-making sugar industries, so the argument went, would help Kenya reach its Government – COMESA sugar safeguard commitment to privatize sugar companies.
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The privatization of the sugar companies was also viewed as a means of addressing their excessive debt and the required financial and human resources to operate them.
Several hotels, including Golf Hotel Limited, Mt. Elgon Lodge Limited, Kabarnet Hotel, Kenya Safari Lodges and Hotels Limited, and Sunset Hotel Limited, were also slated for privatization.
The Kenya Tourist Development Corporation (KTDC) possessed a portion of all the hotels.
The government had also sought to privatize KTDC-associated companies which include; Mountain Lodge Limited, Kenya Hotels Properties Limited, and International Hotels Kenya Limited.
The government of Kibaki intended to privatize three banks to raise the necessary funds for the bank’s future growth, as well as to promote the expansion and stability of the financial sector and capital markets.
These included the National Bank of Kenya, the Development Bank of Kenya, and the Consolidated Bank.
In addition, East Africa Portland Cement, Kenya Wine Agencies, Agrochemical and Food Corporation, and Kenya Meat Commission will not be privatized.
In addition, there are Isolated Power Stations, Numerical Machining Complexes, and New Kenya Cooperative Creameries.
Ruto Halts Privatization Of 26 Companies (LIST)