Kenya govt to privatise 35 state companies

In an attempt to increase productivity in the wake of legislative changes, Kenyan President William Ruto announced on Thursday that his government was prepared to privatise 35 state-owned businesses that were "trapped in government bureaucracy."

A revised privatisation bill that facilitates the sale of state enterprises to private companies was signed into law by his government last month.

At the time of the signing, the presidency stated that the updated law aims to increase the private sector's participation in the economy.

“We have identified the first 35 companies that we are going to offer to the private sector,” Ruto told a gathering of African stock market officials in Nairobi.

He added that the government was also exploring options regarding some 100 state-owned firms, saying that many “would-be lucrative companies… are trapped in government bureaucracy, when the services they are offering can be better offered by the private sector.”

“We will make this opportunity available.”

The economic powerhouse of East Africa is dealing with a number of issues, such as empty government coffers, rapidly rising inflation, and a falling currency that has caused its debt repayment expenses to soar.

This month, the International Monetary Fund announced that a $938 million loan had been approved for Kenya. The country also has a $2 billion eurobond repayment that is due in the following year.

Additionally, the IMF pushed Ruto's administration to restructure public sector companies, especially Kenya Power, the country's electricity provider, and Kenya Airways, the nation's airline, which saw historic losses in 2022.

The World Bank announced on Monday that it anticipates giving the 53 million-person nation $12 billion in assistance over the following three years.

By the end of June, Kenya's debt had risen to over 10.1 trillion shillings ($66 billion), or nearly two-thirds of the country's GDP, according to figures from the Treasury.

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