Kenya is set to kickstart its privatization campaign by offering shares in 11 companies, including the state-controlled oil pipeline, as confirmed by the country’s finance ministry on Monday.
This move is part of a larger plan to sell off more than 35 state-owned enterprises, aiming to bolster government revenue amidst escalating debt obligations.
The companies lined up for partial privatization encompass a diverse range, from the Kenya Pipeline Company – wholly owned by the government – to a prominent convention center in Nairobi, a leading textbook publisher, agricultural businesses, and several industrial firms.
The government’s announcement highlighted the profitability of the pipeline company, emphasizing its monopoly in transporting gas and white oil products.
The ministry issued a notice inviting public feedback on the proposal by December 11, a requirement set forth by the constitution.
The ministry clarified that the intent behind this privatization and restructuring initiative is to advance the government’s objectives for fiscal consolidation and drive economic growth.
Kenya’s most recent privatization endeavor was back in 2008 when it conducted an initial public offering, releasing a 25% stake in the telecommunications giant Safaricom SCOM.NR, a move that proved successful.
To streamline the privatization process, the government recently amended the legislation governing the sale of state-owned enterprises.
President last week noted that these revisions aimed to eradicate bureaucratic hurdles that had previously stalled the privatization process.
