Wi*liam Ruto signs privatisation Bi*l into law

President William Ruto has signed the Privatisation Bill, 2023 into law at State House, Kisumu County

The signing repeals the previous Privatisation Act of 2005, which was enacted before the current constitution and introduces key reforms aimed at streamlining the privatisation process for non-strategic or loss-making government entities.

Privatisation Bill objectives

One of the main objectives of this new law is to encourage greater private sector participation in the Kenyan economy by shifting the production and delivery of products and services away from the public sector.

By involving private capital and expertise, the law aims to improve the infrastructure and delivery of public services.

The bill was sponsored by the Leader of the Majority Party, Kimani Ichung’wah, and also includes provisions for the establishment of the Privatisation Authority.

Under this new framework, the responsibility for formulating the privatisation program lies with the Cabinet Secretary, with the program subject to approval by the Cabinet and subsequent ratification by the National Assembly.

“The privatisation programme shall be submitted to and approved by Cabinet.  The role of the National Assembly shall be to ratify the programme,” he explained.

Privatisation Bill process

The privatisation process, as outlined in the bill, can be carried out through various methods, including initial public offerings of shares, the sale of shares by public tender, sale resulting from the exercise of pre-emptive rights, or any other method defined by the Cabinet.

The proceeds from the sale of direct National Government shareholdings will be paid into the Consolidated Fund.

The signing ceremony took place on Monday at State House, Kisumu, with several key dignitaries in attendance, including Deputy President Rigathi Gachagua, National Assembly Speaker Moses Wetangula, Attorney General Justin Muturi, Cabinet Secretaries Eliud Owalo and Rebecca Miano.