The government is set to earn at least Sh23 billion after offloading minority stake in six companies listed at the Nairobi Securities Exchange.
This is part of the governments restructuring plan spearhead by the International Monetary Fund that will see government shed its control in struggling companies.
In a cabinet dispatch, from a meeting chaired by President William Ruto, the government announced that this is part of the strategic reforms aimed at optimizing the contributions of these investments towards the country's national development aspirations.
“As part of the institutional reforms aimed at fostering a sustained turnaround of the economy, and particularly the management and governance of State Corporations, The Cabinet has considered and approved the proposed divestiture of the State's shareholding in six listed companies,” the dispatch read
The plan will see the state sell off its entire 25 per cent stake at the East African Portland Cement Limited and a further 27 percent held by National Social Security Fund (NSSF).
The sale of the entire shareholding will see the government get Sh17.14 billion.
This comes on the back of revelations that the government found a buyer for a 30 per cent stake in the cement maker last year.
Industry Principal Secretary (PS) Juma Mukhwana while appearing before members of parliament valued 30 percent government stake in the firm at Sh15 billion.
The government, through the Treasury, holds 25 percent shareholding, the NSSF controls 27 percent, Lafarge 42 percent and other Kenyans six percent of the Nairobi bourse-listed cement manufacturer. As of December 2023 the firm held Sh32.78billion in assets.
Other companies earmarked for the offload are Nairobi Securities Exchange (NSE), with a government stake of 3.36 per cent or equivalent of Sh68million.
Housing Finance Company of Kenya Limited, will also see the government sell off its 2.41 per cent (Sh1.5 billion).
Stanbic Holdings, formerly CfC Stanbic Bank Limited, with a government stake of 1.1 per cent will see government rake in Sh5.1 billion from its sale.
Other are Liberty Kenya Holdings (formerly CfC Insurance Holdings), with a government stake of 0.9 per cent and Eveready East Africa PLC, with a government stake of 17.2 per cent which will be sold through KDC.
