President William Ruto on Monday signed the Privatisation Bill, 2023 into law at a State House ceremony in Kisumu, repealing the Privatisation Act, 2005 that was enacted before the current constitution.
According to Ruto, the bill removes bureaucracy in the privatization of non-strategic or loss-making Government entities.
The bill encourages more private sector participation in the economy by shifting the “production and delivery of products and services from the public sector,” Ruto said. It aims to “improve the infrastructure and delivery of public services through the involvement of private capital and expertise.”
Sponsored by Ichung’wah, the bill establishes a Privatisation Authority to oversee the process.
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Ichung’wah said the bill assigns the Cabinet secretary responsibility for formulating a privatization program to be “approved by the Cabinet and ratified by the National Assembly.”
Privatization will be done through “initial public offerings, public tenders, preemptive rights or other methods” defined by the Cabinet, Ruto said. Proceeds from direct national government share sales will go to the Consolidated Fund.
“This landmark legislation will allow us to more efficiently manage state-owned enterprises,” Ruto said. “I am confident it will stimulate economic growth and improve services for all Kenyans.”
Attending the signing were Deputy President Rigathi Gachagua, National Assembly Speaker Moses Wetang’ula, Attorney General Justin Muturi, Cabinet Secretaries Eliud Owalo and Rebecca Miano, and Majority Leader Kimani Ichung’wah.
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