The cabinet has announced plans to divest government shareholding in six listed companies through the sale of shares at the Nairobi Securities Exchange (NSE).
The decision, which was approved during a Cabinet meeting chaired by President Ruto on Tuesday, targets state-owned stakes in East African Portland Cement Limited, the NSE itself, Housing Finance Company of Kenya Limited, Stanbic Holdings (formerly CfC Stanbic Bank Limited), Liberty Kenya Holdings (formerly CfC Insurance Holdings), and Eveready East Africa PLC.
“The divestiture in the six companies, through the sale of shares at the Nairobi Securities Exchange, will optimize the contributions of these investments in the realization of our national development aspirations,” the Cabinet dispatch stated.
The government currently holds a 25.3% stake in East African Portland Cement Limited, with the National Social Security Fund (NSSF) owning an additional 27%. Its shareholding in the NSE stands at 3.36%, while it holds 2.41% in Housing Finance, 1.1% in Stanbic Holdings, and 0.9% in Liberty Kenya Holdings. The state’s stake in Eveready East Africa PLC stands at 17.2% through the Kenya Development Corporation (KDC).
The Cabinet dispatch emphasized that the divestiture aligns with the administration’s transformative plan for economic renaissance, dubbed the Bottom-Up Economic Transformation Agenda (BETA).
In addition to the divestiture plans, the Cabinet approved a debt waiver for coffee farmers and other coffee sector reforms, including the write-off of historical debts amounting to KES 6.8 billion owed by coffee farmers nationwide. These measures aim to revitalize the coffee production value chain and position Kenya’s coffee as one of the nation’s premier exports.
“These interventions seek to reposition Kenya’s coffee on the global stage as one of the nation’s premier exports,” the dispatch stated.
The Cabinet also approved a framework for a full transition from the National Health Insurance Fund (NHIF) to the Social Health Authority (SHA) beginning July 1, 2024, as part of the implementation of the Universal Health Coverage (UHC) pillar of BETA.
