President Ruto assents to the Privatisation Bill 2023

The Bill provides that the privatisation of entities published under Gazette Notice No. 8739 of 14th August 2009 shall lapse. [State House, X]

President William Ruto has assented to the Privatisation Bill, 2023, a move that will see a speeding up of the privatisation of non-performing state-owned enterprises.

The Bill has repealed the Privatization Act 2005 which was enacted before the implementation of the current Constitution.

"The Bill, as passed, has a revised regulatory framework for the privatisation of public entities to improve the efficiency and competitiveness of Kenya's productive resources. It is intended to remove the bureaucratic processes in the privatization of non-strategic or loss-making government entities," a statement from State House read in part.

The Bill that was sponsored by Majority Leader in Parliament Kimani Ichung'wah, is expected to encourage more participation of the private sector in the economy by shifting the production and delivery of products and services from the public sector to the private sector.

"The Bill will also improve the infrastructure and delivery of public services through the involvement of private capital and expertise and at the same time reduce the demand for government resources," the statement added.

The government also aims to generate additional revenue for the government through compensation for privatisations and as well as improve the regulation of the economy by reducing conflicts between the public sector's regulatory functions and commercial functions.

The state is now expected to establish a Privatization Authority that will handle the privatisation unlike before when the matter required parliamentary approval.

"The Bill assigns the responsibility of formulating the privatization program to the Cabinet Secretary. Thereafter, the privatization program shall be submitted to and approved by the Cabinet. The role of the National Assembly shall be to ratify the program," the Bill indicates.

The Bill provides that the privatisation of entities published under Gazette Notice No. 8739 of 14th August 2009 shall lapse. These entities include the Kenya Energy Generation Company (KENGEN), Kenya Pipeline Company Ltd, Kenya Ports Authority-Eldoret Container Terminal, and Chemelil Sugar Company, among others.