KICC to begin search for strategic investor as CS Mutua announces new revenue milestone
The government has announced plans to onboard a strategic investor for the Kenyatta International Convention Centre (KICC) in an effort to revitalize the state corporation.
In a statement on Thursday, February 8, Tourism and Wildlife Cabinet Secretary Alfred Mutua said the process will begin next week with an engagement with the board of management.
"This partner will play a pivotal role in revitalizing KICC, infusing capital, and elevating it into a world-class facility poised for even greater success," Mutua stated.
Mutua issued the statement after a meeting with the board, where he was briefed on the management's strategy to attract conference tourism to Nairobi.
"Led by Chairperson Adelina Mwau, the board shared insights into their ongoing efforts to develop a new marketing plan aimed at positioning KICC as the premier destination for conferences and exhibitions within the region," he added.
At the same time, the CS disclosed that KICC had surpassed its revenue expectations, boasting an improved performance of Ksh1.07 billion between July and December 2023, against a target of Ksh545 million.
"In my address to the board, I emphasized the critical importance of unity and cohesion, stressing our collective mission to work as a unified team with only one objective, actualizing our set goals. Our primary objective remains the fulfilment of the Kenya Kwanza Administration's Bottom-Up Economic Transformation Agenda (BETA)," he noted expressing optimism that the future is bright.
It, however, remains unclear how the management will onboard a new partner without violating the court ruling that halted the government's plans to privatise 11 state agencies in December last year.
KICC, the Kenya Pipeline Company (KPC) and the New Kenya Cooperative Creameries (KCC) were among the parastatals marked for privatisation in a proposal by National Treasury Cabinet Secretary Njuguna Ndung’u.
Other agencies that were set to be onboarded on the 2023 Privatisation Programme included the Kenya Literature Bureau (KLB), National Oil Corporation of Kenya (NOCK), Kenya Seed Company Limited (KSC) and Mwea Rice Mills Ltd (MRM).
Others were Western Kenya Rice Mills Ltd (WKRM), New Kenya Cooperative Creameries Limited (NKCC), Numerical Machining Complex Limited (NMC), Vehicle Manufacturers Limited (KVM) and Rivatex East Africa Limited (REAL).
President William Ruto had last year vowed to oversee the sale of at least 35 state firms that he claimed were trapped in government bureaucracy, hindering the exploitation of their potential.
However, the Head of State suffered a setback after opposition leader Raila Odinga's ODM party challenged the decision in court, arguing that the sale ought to be subjected to a referendum due to the strategic significance of the companies.
"I am satisfied that the petition raises substantial constitutional and legal issues of public importance that require critical examination," High Court judge Chacha Mwita ruled on December 5, 2023.
