A parliamentary bill sponsored by Majority Leader Kimani Ichung’wah has been signed into law by President William Ruto that states that states that parliament has no power to approve or decline the privatisation of state corporations.
The bill, now law intends to remove the bureaucratic processes in the privatisation of loss making entities and non-strategic corporations that add no value to government. This will fasten this process and ensure swift transition.
This seeks to encourage the private sector to take up public sectors that they can manage so that they can improve them which in turn will contribute positively towards rebuilding the economy.
Service delivery will also be improved through privatisation due to involvement of private experts taking up various stalled government enterprises that need improvement.
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The sale of government firms to the private investors will be through Initial Public Officers. This move has been opposed by the opposition by claims that the bill seeks to benefit few individuals affiliated to the government. The opposition argues that the entities should be left to serve the people of Kenya. A statement read:
“These entities, some of which are critical to our nation’s security, must be allowed to continue serving public good rather than deepening the pockets of individuals.”
The Bill has also set out four privatization methods which include initial public offer of shares, sale of shares by public tender, sale resulting from the exercise of pre-emptive rights and any other method that may be determined by Cabinet
The move, according to President William Ruto will help in raising revenue and funding for the government citing reasons for the proposal. The programme remains to be submitted to the Cabinet which then later will be taken to parliament for approval
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