The National Treasury has listed eleven State Corporations for privatization pending public views on the exercise.
Among the corporations are the Kenya Literature Bureau (KLB), National Oil Corporation of Kenya (NOCK), Kenya Seed Company Limited (KSC), Mwea Rice Mills Ltd (MRM), Western Kenya Rice Mills Ltd (WKRM) and Kenya Pipeline Company Limited (KPC).
Other state corporations in the exercise are the New Kenya Cooperative Creameries Limited (NKCC), Numerical Machining Complex Limited (NMC), Vehicle Manufacturers Limited (KVM), and Rivatex East Africa Limited (REAL).
According to a statement, Treasury Cabinet Secretary Njuguna Ndungu stated that the move to privatize the eleven government parastatals is anchored on the government efforts to scale up economic development in the country.
“The National Treasury and Economic Planning has prepared the 2023 Privatization Programme in accordance with the Privatization Act 2023. The Programme can be accessed from The National Treasury website. Further, privatization and restructuring is geared towards the Government’s efforts for fiscal consolidation and spurring economic development through Raising of additional revenue,” he said.
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The government claims that the decision to privatize its publicly traded state corporations is based on its efforts to achieve fiscal consolidation, promote economic growth by generating additional revenue, lessen the need for government resources, and enhance the regulatory environment in the economy by separating some entities' commercial and regulatory functions.
It asserts that the action will increase economic efficiency by promoting greater involvement from the private sector, increasing the economy's responsiveness to market forces and competition.
