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Friday, November 18, 2022 – President William Ruto’s plan to privatise public companies, especially those making losses like KQ and Mumias Sugar, will soon come to fruition if the latest remarks by Trade CS Moses Kuria are anything to go by.
Speaking yesterday, Kuria announced that there was a team in place that was actively reviewing the Kenyan privatization law to allow private entities to invest in public companies.
“We have just agreed with the president that before we break for Christmas, we will go back to Nairobi Stock Exchange to ring the bell for asset backed security,” Kuria remarked.
Kuria explained that the committee has looked into ways in which the government can benefit from foreign and domestic investment entities.
The recommendations have been submitted to the Attorney General’s office and by February 2023, the Privatization Act will have been reviewed to allow Kenyans and foreign entities to have a stake in government parastatals.
The CS defended the move to sell public companies to private individuals, saying it was a way to tame government borrowing.
With private companies buying stakes in public companies, the government will raise money and not be forced to rely on loans, according to Kuria.
The president on October 12, announced that his government will privatise 10 state corporations within one year.
“I have asked the ministry concerned that between five and ten public enterprises that are mature should be listed in the next 12 months.
“I expect that the private sector will also work with the capital markets so that we can also have companies from the private sector listing in the Nairobi Stock Exchange,” Ruto announced back then.
The Kenyan DAILY POST.