- ODM in its court papers argued that some public assets like the KICC, Kenya Pipeline Company, Kenya Literature Bureau, Kenya Seed Company can only be privatized with the consent of the people at a referendum.
- This is so because they form part of the sovereign wealth of Kenya with significant cultural and strategic importance to the public.
Image: FILE
The High Court has suspended the government's move to privatise KICC and 10 other state corporations following a case filed by the Orange Democratic Movement Party.
Justice Chacha Mwita issued the order after ODM through Advocate Jackson Awele said the public was not allowed to give its views regarding the Privatization Act which made it easier to sell the state enterprises to private companies.
"A conservatory order is hereby issued suspending the implementation of section 21 (1) of the Privatization Act 2023 or any decisions made pursuant to that section, until 6th February 2024," reads the order granted by the Judge.
ODM in its court papers argued that some public assets like the KICC, Kenya Pipeline Company, Kenya Literature Bureau, and Kenya Seed Company can only be privatized with the consent of the people at a referendum.
This is so because they form part of the sovereign wealth of Kenya with significant cultural and strategic importance to the public.
The party in seeking the orders questioned why the government was in a rush to sell the assets.
It argued that the government has not demonstrated the urgency to justify the 'intended rush or any credible reasons that outweigh the constitutional questions they have raised in their case.
“At best, the only supposed justification for the intended sales are the reported conditionalities imposed by the World Bank and the International Monetary Fund for the sale of state corporations to repay alleged foreign debt obligations,” says ODM.
On 9 October 2023, President William Ruto assented to the Privatization Bill, 2023 (the impugned Act) into law and designated its commencement as 27th October 2023.
The impugned Act repealed the Privatization Act, of 2005 and thereby introduced several provisions.
The net effect according to the papers is to grant the Executive arm of government sweeping powers to dispose of prized assets comprised of Kenya’s sovereign wealth
“In passing the impugned Act, the National Assembly and the President failed in there to protect and uphold the sovereignty of the People of Kenya,” says ODM.
Awele said once the hearing of the case commences, they will demonstrate to the court how the Act is deliberately designed to facilitate impulsive, absolute and irrational decision-making in the sale of public assets and is accordingly not in the public interest.
They will also raise the issue of public participation which they say was not adhered to and further argue how the challenged provisions do not provide for any adequate security guarantees or system of checks and balances for the integrity of the purported privatization programmes as intended by the Constitution of Kenya, 2010.
“Neither the public nor the Petitioner was given a reasonable and/or meaningful opportunity to comment on or contribute to the substantive provisions of the impugned amendments at any stage before their passage by the National Assembly,” says ODM.
It’s their case that public assets such as the Kenya Literature Bureau, Kenya Seed Company and the Kenya Pipeline Company are strategic installations central to Kenya’s national security.
“Their sale accordingly elicits national security concerns that directly threaten the sovereignty of the people and the Republic of Kenya,” it says.
Those sued are the Speaker of the National Assembly, CS Treasury and the Attorney General.
Justice Mwita directed ODM to serve their papers to the respondents immediately.
The Respondents are to file their responses within 5 days.
Highlighting of submissions will be done on February 6 next year.