A leaked privatisation programme shows the commission tasked with the sale has okayed the disposal of over 25 entities partly or wholly.
Part of the government’s 70 per cent shareholding at KenGen is among the top assets listed for sale.
The paper doesn’t state exactly what component is up for sale but says the aim is to “mobilise resources for additional investments.”
The document details that the sale is aimed at “enhancing transparency and corporate governance” as well as “broadening of shareholding in the economy.”
The Privatisation Commission says the aim is to develop capital markets and "raising of resources to support the government budget."
The programme details five sugar firms and state-owned hotels whose sale the previous administrations failed to finalise.
Details further show that Kenya Pipeline Company could be put on a public offer to offload the government’s full control of the entity.
Under the Kenya Ports Authority, the commission has recommended the sale of the Eldoret Container Terminal to a private investor.
The commission reports that the facility was completed in 1994 but has not yet been put to use. “Privatisation is to address operationalisation to serve the Great Lakes Region and Southern Sudan,” the commission says.
The commission adds that when put to use, the container terminal would “enhance Kenya’s and regional competitiveness and facilitate investment and economic growth.”
Cargo loading and offloading services offered by Kenya Ports Authority, known in the shipping sector as stevedoring, are also due to be privatised.
The PC says the move is “to improve efficiency in the delivery of services through mobilisation of private sector financial and management resources.”
The commission has further recommended that berths 11 to 14 at the Mombasa port – presently wholly owned by KPA - be privatised.
It is argued that the sale would expand the capacity of the port "through mobilisation of private sector financial and management resources."
Past attempts to privatise berths at Mombasa port have been opposed by dock workers.
The details have emerged at a time President William Ruto’s administration has escalated the planned sale of non-performing state enterprises.
Kenya Kwanza has proposed changes to the existing law with the aim of upgrading the Privatisation Commission into an authority.
A new bill by the National Treasury seeks to create the Privatisation Authority run by a board.
“The Authority shall be the successor to the Commission existing immediately before the commencement of this Act,” the Privatisation Bill, 2023 reads.
Kiharu MP Ndindi Nyoro, a key Ruto ally, also restated that the planned sale is cast in stone.
The lawmaker, the National Assembly Budget Committee chairman, said "the government has no business running the loss-making entities."
The proposed law places the Treasury Cabinet Secretary in pole position to control the privatisation of any public entity.
The CS would be tasked to provide policy direction, coordinate adherence to the law, and develop privatisation programmes.
“The Cabinet Secretary shall identify and determine the entities to be included in the privatisation programme,” the proposed law reads.
Among other sweeping powers handed to the CS will be to appoint a secretary to the review board that would adjudicate disputes.
Current members of the Privatisation Commission will continue with their duties until the end of their term, meaning they are likely to carry on with the recommendations – and possibly more.
The developments have sparked a heated political debate with the opposition calling for a stop to the sales.
Opposition leader Raila Odinga alleged that the proposal, which elbows out MPs from having a say in the sale, is a ploy by Kenya Kwanza honchos to buy the firms.
Terming the proposal as “dangerous and destructive”, Raila said a situation where “UDA alone will be able to sell, wind up, terminate national resources” be rejected.
“They want to sell entities like Kenya Airways, Mumias Sugar, KCC and all other state assets without oversight,” the ODM leader said.
Raila also took issue with the ongoing purge at state parastatals. “Who is going to benefit from the selling of Kenya’s key economic assets?”
“These changes are being made to pave the way for the looting of public assets. We ask Kenyans to totally reject all these policies and demand that UDA resigns,” he told a charged rally at Jacaranda Grounds, Nairobi.
The 72 per cent business held by the Kenya Development Corporation, now a bank, at the Kenya Wine Agencies Limited is also due for sale.
The aim, the document shows, is to “guarantee its continued existence and viability.”
Also listed for sale is the East African Portland Cement where NSSF still holds 27 per cent shares and 25 per cent for the government.
The commission further approved the sale of the Kenya Meat Commission, presently wholly owned by the government.
It is held by the proponents that the sale would address KMC’s future viability and provide the required financial resources to turn it around.
Also recommended for sale is the New Kenya Cooperative Creameries, which is also owned by the government 100 per cent.
PC said privatisation of the company “will address future governance and sustainability of its operations.”
The commission has also recommended the sale of the Numerical Machining Complex – a state agency that handles railway scrap metal.
Kenya Railways owns 51 per cent share at the entity with the University of Nairobi controlling 49 per cent.
“Its restructuring and privatisation will address the utilisation of the company’s idle assets,” the commission says in its programme.
The governments’ 89.3 per cent stake at the Development Bank of Kenya could also be put on public offer.
The commission says it recommended the sale to release funds invested by ICDC for lending to industry and other enterprises.
“It will address the bank’s financial and management resource needs and pass financial and operational risk from government to the private sector,” the document reads.
PC further recommends the sale of ADC’s 28.2 per cent and ICDC’s 28.8 per cent stake in the Agrochemical and Food Corporation “to address the company’s excess debt.”
The commission also approved the sale of Consolidated Bank of Kenya’s Deposit Protection Fund, which accounts for 50.2 per cent, and shares allocated to a number of state corporations.
The shares allocated to government institutions on account of deposits placed by them in the weak banks merged to form Consolidated Bank are also open for sale.
The PC has approved the sale of government and NSSF’s stake in National Bank of Kenya to not only net resources for the bank but also recoup part of government investment to finance other development projects.
A number of isolated power stations are also listed for sale, the document shows, as well as several hotels and tourism associated companies.
The commission has recommended the sale of Kenya Safari Lodges and Hotels Limited, Sunset Hotel – owned by KTDC and Kisumu County -Golf Hotel Kakamega, Mt Elgon Lodge Ltd, and Kabarnet Hotel.
PC says the sale would help the entities mobilise resources, and generate proceeds for the industry in loans to Kenya Tourism Development Corporation.
“Recommended privatisation method will also address the best option for ownership and management of hotels owned by KTDC,” the commission said.
For Muhoroni, Miwani, Sony, and Nzoia Sugar companies, the commission said the aim is to meet Comesa safeguards.
