Lawyers protest move allowing Treasury CS to privatise state firms

Lawyers have protested a move by the Cabinet giving Treasury CS Njuguna Ndung'u powers to privatise state corporations.

This is after the Cabinet approved the Privatisation Bill, 2023, which will repeal the Privatisation Act of 2005.

In the Bill, the CS will not need the approval of Parliament to privatise state corporations.

According to Law Society of Kenya president Eric Theuri, the decision to bypass Parliament opens up the possibility of abusing powers by the executive.

He said the privatisation needs parliamentary approval for quality checks.

"Parliament oversights Executive on behalf of the people. Privatization needs parliamentary approval as a quality check safeguard. The disposal of public assets must be guided by public interest considerations. By-passing Parliament opens possibilities for abuse," Theuri tweeted.

Lawyer Cliff Ombeta said this issue of the executive (cabinet) deciding about giving powers to a Cabinet Secretary to proceed with privatisation without parliament oversight...... isn't it a constitutional duty for parliament? Swali tu.

Omwanza Ombati said the move by Cabinet is unconstitutional.

He said Parliament cannot digress its oversight powers.

"Someone advise Cabinet, this will be unconstitutional. Parliament cannot derogate its oversight power," he said.

On Tuesday, Cabinet said the sale of non-strategic, non-performing public entities will help improve the upgrade of infrastructure and the delivery of services to Kenyans.

The Cabinet added that the Privatisation Bill 2023 will also tame the demand for government resources and generate more funds to drive the government’s development agenda.

"This ushers in a more facilitative and non-inhibiting legal and policy framework that will oversee privatisation in the country," a dispatch from Cabinet said.

"The proposed Bill gives power to the Treasury to privatise public-owned enterprises without the bureaucratic approvals of Parliament."