In a significant move aimed at bolstering economic reforms, Kenya’s Cabinet has given the green light for the privatization of seven state-owned enterprises. The decision, reached during a meeting chaired by President William Ruto at State House, Nairobi, brings the total number of entities slated for privatization to 17.
Among the enterprises earmarked for privatization is the Development Bank of Kenya, which has transitioned into a fully-fledged deposit-taking commercial bank regulated by the Central Bank of Kenya (CBK). This decision underscores the government’s commitment to leveraging private sector investment for the growth and development of key sectors.
In addition to the Development Bank, other entities slated for privatization include Golf Hotel Limited, Sunset Hotel Limited, Mt Elgon Lodge Limited, and Kabarnet Hotel Limited. Furthermore, hotels under the Kenya Safari Lodges and Hotels Limited umbrella, namely Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge, are also set to be sold.
The Cabinet believes that privatization will stimulate expansion within the country’s hospitality industry, creating employment opportunities and enhancing business prospects. This strategic move aligns with the ongoing resurgence of the tourism sector, fueled by Kenya’s Visa-Free entry regime.
The decision to privatize these enterprises follows the initial proposal by the Kenya Kwanza administration to privatize 11 entities, including Kenya Literature Bureau (KLB), Kenyatta International Convention Centre (KICC), Kenya Seed Company Limited, and Kenya Pipeline Company (KPC), among others.
However, the privatization of the initial 11 parastatals has been temporarily halted by the High Court pending further deliberation. This decision follows a case filed by Mr. Raila Odinga’s Orange Democratic Movement (ODM), asserting that these entities are of strategic national interest and necessitate a referendum for public approval.
Amidst these developments, the Cabinet has also approved initiatives aimed at modernizing the education system through digitization. This intervention seeks to address governance challenges within the education sector, ensuring transparency and efficiency in resource allocation.
Furthermore, in line with efforts to combat climate change, the Cabinet has ratified the implementation of the Financing Locally Led Climate Action Programme (FLLoCA), signaling Kenya’s commitment to transitioning to a low-carbon and climate-resilient development pathway.
Addressing urban congestion, the Cabinet has sanctioned the implementation of the Nairobi Intelligent Transport System (ITS), aiming to revolutionize traffic management in the capital city. This technology-driven approach seeks to streamline traffic control processes and reduce human interfaces, ultimately improving efficiency and reducing congestion.
Moreover, recognizing Nairobi’s role as a global hub, the Cabinet has endorsed the hosting of various regional, continental, and global conventions and meetings. These events, including the Sixth Session of the United Nations Environment Assembly (UNEA-6) and the Global Innovation and Entrepreneurship Centre (GIEC) events, are expected to bolster Kenya’s position on the international stage.
In a solemn moment, the Cabinet also paid tribute to Kelvin Kiptum, the world marathon record holder, and his coach Garvais Hakizimana, who tragically lost their lives in a road accident. Kiptum’s remarkable achievements continue to inspire millions worldwide, and the government has pledged support for his family to ensure a fitting farewell for the sporting icon.
As Kenya continues to forge ahead with its economic and developmental agenda, these decisions underscore the government’s commitment to fostering growth, innovation, and progress across various sectors of the economy.