The Ministry of National Treasury and Economic Planning has released a list of 11 State Owned Enterprises (SOEs) it plans to privatize by the end of the year.
The privatization and restructuring of these firms aim to generate additional revenue for the government, reduce the demand for government resources by the firms, enhance the country’s regulatory environment, promote private sector participation, and stimulate competition.
The list includes profitable entities such as Kenya Literature Bureau (KLB), Kenyatta International Convention Centre (KICC), Kenya Seed Company Limited, Kenya Pipeline Company (KPC), and New Kenya Co-operative Creameries (N-KCC).
Despite being profitable, the sale of these firms is expected to generate additional revenue for the government. The public has until December 11 to submit recommendations on the planned sale of the SOEsThe privatization of state-owned enterprises (SOEs) is a common practice aimed at improving their performance and reducing fiscal risk.
Governments have been privatizing SOEs to enhance their financial and operational performance and to operate based on their balance sheets. The process involves separating commercial and noncommercial objectives, obtaining commercial financing, strengthening oversight and monitoring, improving SOE boards and management, and minimizing political interference.
Privatization has been the main option for commercial SOEs in various regions, and it has led to increased revenues for governments