President William Ruto’s October 2022 promise to privatise between six and 10 State-owned firms within a year is yet to bear fruit, held up by ongoing legislative changes to the Privatisation Act and lack of budgetary support.
The President’s plan was seen as a key step in reviving the fortunes of the Nairobi Securities Exchange (NSE), which has suffered due to a drought of big initial public offerings (IPOs) that has now gone into a second decade.
Speaking on Monday during the official launch of the Central Bank of Kenya’s new bonds trading platform, the President challenged the Capital Market Authority (CMA) and the NSE to push for private sector listings as well.
“There is a lot that can be done in that space and I am not seeing movement in that space, especially on the issues that we discussed when I came to the NSE,” said the President.
“I know I have a part to keep, and that is to deliver some government companies for sale. I am working on it.” On the legislative front, MPs are yet to pass the Privatisation Bill 2023, which will set the stage for sale of parastatals.
MPs have proposed key amendments to the Bill to retain parliamentary oversight over sale of state assets, which the Bill sought to bypass.
