‘Gov’t talked of privatisation, not disposal’ – Mudavadi defends privatisation plan

Wednesday, December 13th, 2023 14:23 | By
Prime Cabinet Secretary Musalia Mudavadi
Prime Cabinet Secretary Musalia Mudavadi. PHOTO/@MusaliaMudavadi/X

Prime Cabinet Secretary Musalia Mudavadi has defended the government's plan to privatise several government firms.

Speaking during the opening forum of the Kenya Diaspora Investment Conference, Mudavadi said the move would not have negative effects on the operation of the firms.

"The Saudi Investment Fund has taken up 12 per cent shares in Heathrow Airport. As the Saudis invest in Heathrow Airport, have they uprooted it from London? It still remains an asset in the United Kingdom but they are part of the profit process. We need to get our people to understand that when we talk of broadening the space, it's to bring in capital, technology and resources that you may not be able to raise the local front," he said.

"The government talked about privatisation, they did not talk about disposal of KICC. Two distinct things. What would be wrong If part of the diaspora fund were to become part of the partnership in commercializing the KICC operations?"

This comes days after the High Court issued orders halting its plans to privatise the Kenya International Conference Center(KICC) and 10 other parastatals.

In the proposed sales, unveiled last month, the government lined up 11 State corporations for privatisation a little over a month after President William Ruto signed the Privatisation Bill, 2023 into law.

Among the entities targeted for privatisation include the Kenya Literature Bureau (KLB), Kenya Pipeline Company (KPC), and the National Oil Corporation of Kenya (NOCK).

Others are Kenya Seed Company Limited (KSC), Mwea Rice Mills Ltd (MRM), Western Kenya Rice Mills Ltd (WKRM), New Kenya Cooperative Creameries Limited (NKCC), Numeric Machining Complex Limited (NMC), Vehicle Manufacturers Limited (KVM) and Rivatex East Africa Limited (REAL).

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