President William Ruto signed it into law after the National Assembly approved the Privatization Bill, 2023 in September.
A revamped regulatory framework for the privatization of public businesses is included in the bill, sponsored by Majority Leader Kimani Ichung'wah and aims to increase the productivity and competitiveness of Kenya's productive resources.
"It is intended to remove the bureaucratic processes in the privatization of non-strategic or loss-making government entities," states a report from the National Assembly released on Monday.
The need for parliamentary approval has been eliminated, and the Privatization Authority will be created now that Ruto's signature has been added to the Bill.
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The elevation of the Piny-Owacho Dispensary to a Level 3A hospital in Uriri Constituency will expand the delivery of accessible, affordable and quality medical care to the more than 200,000 people of Kanyamkago, accelerating our rollout of the Universal Health Coverage. pic.twitter.com/wlYbymNpXd
— William Samoei Ruto, PhD (@WilliamsRuto) October 8, 2023
By moving the production and delivery of goods and services from the public sector to the private sector, the bill also aims to promote greater private sector involvement in the economy.
Using private resources and skills will also enhance the delivery of public services, lower the demand for government resources, and produce more money for the government through compensation for privatizations.
Additionally, promoting private ownership will widen the base of ownership in the Kenyan economy. Additionally, Kenya's capital markets will be improved, and conflicts between the regulatory and commercial roles of the public sector will be reduced.
The National Assembly will then ratify the privatization plan when it is presented to the Cabinet for approval.
The Bill also specifies four privatization techniques, including an IPO, a public tender sale, a sale resulting from the exercise of pre-emptive rights, and any other technique that the Cabinet may decide upon.
This is set against President William Ruto's proposal to privatize State Corporations, which he claimed would help the government raise more money.
In addition to additional divestitures to State-run businesses that are already listed on the Nairobi Securities Exchange (NSE), privatization is anticipated to result in the sale of government businesses to the general public through initial public offerings (IPOs).
However, the Azimio la Umoja alliance has rejected the action, claiming that it was designed to benefit a select group of people.
"These entities, some of which are critical to our nation's security, must be allowed to continue serving public good rather than lining the pockets of individuals," said the coalition.
