KICC Among 11 State-Owned Entities To Be Privatized
The Kenyan government is set to privatize 11 state-owned entities, including the iconic Kenyatta International Convention Centre (KICC), as part of a broader plan to boost the economy. The move comes just a month after President William Ruto signed into law the Privatization Bill 2023, which grants the National Treasury sweeping powers to sell off state-owned assets.
The other entities to be privatized include Kenya Pipeline Company, Kenya Literature Bureau, National Oil Corporation, Kenya Seed Company, Mwea Rice Mills, Western Kenya Rice Mills, New Kenya Cooperative Creameries, Kenya Vehicle Manufacturers, Rivatex East Africa, and Numerical Machining Complex.
According to Treasury Cabinet Secretary Njuguna Ndung’u, the privatization of these entities is aimed at generating additional revenue for the government, reducing reliance on exchequer support, and attracting private sector capital and expertise.
The government has argued that KICC, which is a major landmark in Nairobi’s skyline, is operating in a competitive market and would benefit from private sector management. Similarly, the Kenya Seed Company, which is a profitable entity, is seen as being ready for private ownership.
Other entities to be privatized include Rivatex East Africa, which is expected to benefit from private sector capital and expertise as Kenya seeks to increase exports under the new African Growth and Opportunity Act (AGOA) trade pact with the United States.
Kenya Pipeline Company, which has a monopoly in the oil pipeline market, is also being privatized due to legal challenges and the government’s desire to introduce competition in the sector.
The privatization of state-owned enterprises in Kenya has had mixed results in the past. Safaricom and KenGen have emerged as success stories, while the privatization of Kenya Railways has resulted in asset losses and mismanagement.
Despite the mixed track record, the government is optimistic that the privatization of these 11 entities will benefit the economy by generating revenue, attracting investment, and improving efficiency.
