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High Court prolongs order to block sale of parastatals

Faith Chandianya by Faith Chandianya
February 6, 2024
in News
Reading Time: 1 min read

The High Court has extended orders suspending the sale of 11 parastatals in response to a case filed by the Orange Democratic Movement (ODM) Party.

Justice Chacha Mwita prolonged the orders following the consolidation of the ODM file with two other related cases. These cases were initiated by Gitahi Ngunyi, an economic and finance journalist, and the Katiba Institute.

Under the consolidated case, the Orange Democratic Party takes the lead. Respondents in the case include the Speaker of the National Assembly, the Treasury Secretary, the Attorney General, the National Assembly, the Auditor General, and the Senate.

The central issue in all matters revolves around the constitutionality of the Privatisation Act.

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Judge Mwita granted the respondents seven days to respond to the petitions. Additionally, written submissions are required, limited to a maximum of 10 pages.

The hearing for the case is scheduled for March 7 at 11 a.m.

ODM, represented by Advocate Jackson Awele, initiated its case late last year, arguing that the public was not adequately engaged regarding the Privatisation Act.

Specifically, ODM contended that certain public assets, including the KICC, Kenya Pipeline Company, Kenya Literature Bureau, and Kenya Seed Company, should only be privatized with the consent of the people through a referendum.

These assets, ODM argues, constitute part of Kenya’s sovereign wealth and hold significant cultural and strategic importance for the public.

The party questioned the government’s urgency in selling these assets, asserting that the government has not provided credible reasons for the rushed sales.

“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,” stated ODM.

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