In the wake of the government’s announcement regarding the privatization of several corporations, Kenyans have offered a range of perspectives on the matter.
However, North Rift farmers, particularly those in the region, have expressed reservations, voicing concerns about the potential impact on the Kenya Seed Company (KSC) and Kenya Commercial Creameries (KCC). The government’s privatization plans encompass 35 State-Owned Companies, including the Kenya Pipeline Company (KPC), Kenya New Cooperatives Creameries (KCC), Kenya Literature Bureau (KBL), National Oil Corporation of Kenya, Kenya Seed Company Limited (KSC), and Mwea Rice Mills Ltd (MRM).
The decision to pursue privatization stems from the government’s aim to generate additional revenue amidst economic challenges, marked by heightened inflation and the devaluation of the Kenyan currency. These factors have cascading effects on debt repayment costs. The government also seeks to enhance the productivity of state-owned corporations through privatization, fostering increased private sector participation in the Kenyan economy.
Representatives of North Rift Farmers contend that, instead of privatizing these entities, the government should embark on a revitalization agenda to address the prolonged mismanagement that many of these corporations have endured. The farmers express apprehension, particularly regarding KCC and KSC, which are crucial agricultural agencies in the region, potentially jeopardizing the nation’s food security.
Kiprono Menjo, Director of the Kenya Farmers Association (KFA), asserted that the privatization of New KCC and KSC is not ideal for the farming sector. He highlighted the fact that New KCC has been 100.0% farmer-owned, with the state injecting Kshs 547.0 billion to bail out those who assumed control of the cooperative after mismanagement.
Menjo raised concerns about the hidden self-interests of those supporting privatization, advocating instead for the government to focus on major corporations that consistently incur substantial annual losses.
Similarly, farmers in Kirinyaga County expressed discontent following the government’s indication of plans to privatize Mwea Rice Mill Ltd (MRM), while schemes such as Ahero and Mbura remain unaffected. The farmers argue against the sale of MRM, emphasizing its exclusive ownership by farmers in Mwea, passed down through generations. Residents in Mwea have called on their leaders to safeguard their interests and have urged the president to explore alternative avenues for fundraising.
