Cabinet Approves Privatisation Of Parastatals
Following a recent Cabinet meeting chaired by President William Ruto at State House, significant decisions have been made regarding the privatisation of State Owned Enterprises in Kenya. The Cabinet has greenlit the sale of six more SOEs, bringing the total number of entities slated for privatization to 17. Among these is the Development Bank of Kenya, along with others such as Kenya Safari Lodges and Hotels Limited, Golf Hotel Limited, Sunset Hotel Limited, Mt. Elgon Lodge Limited, and Kabarnet Hotel Limited.
The rationale behind this move is to invigorate the hospitality industry in the country and foster the growth of these individual units through private sector investment. This initiative follows the initial steps taken by the Kenya Kwanza administration to privatize 11 entities, including the likes of Kenya Literature Bureau, Kenyatta International Convention Centre, Kenya Seed Company Limited, Kenya Pipeline Company, and New Kenya Co-operative Creameries. However, the privatization of these initial 11 parastatals has been put on hold by the High Court due to ongoing legal proceedings initiated by Mr. Raila Odinga’s Orange Democratic Movement. The argument put forth is that these entities hold strategic national importance, and therefore, a referendum should determine whether they should be sold.
In addition to the privatization efforts, the Cabinet has also approved the digitization of the entire education system, spanning from primary school to tertiary and university levels. This move aligns with the government’s broader digital transformation agenda.
Furthermore, in addressing the pressing issue of climate change, the Cabinet has ratified the implementation of the Financing Locally Led Climate Action Programme. This program, to be executed in collaboration with development partners, aims to support Kenya’s transition to a low-carbon and climate-resilient development path. It seeks to achieve this by catalyzing integrated climate change mitigation, adaptation, and resilience actions across the entire economy.
The Cabinet has greenlit the implementation of the Nairobi Intelligent Transport System to tackle the persistent traffic congestion plaguing the city. According to the cabinet’s statement, this technology will replace the presence of traffic police and county traffic officers, commonly referred to as Kanjo, at various junctions throughout Nairobi. The decision stems from the city’s status as the capital, frequently hosting international-level meetings and events.
Additionally, the Cabinet has endorsed the hosting of numerous regional, continental, and global conventions this year, including notable gatherings such as the Sixth Session of the United Nations Environment Assembly, the African Minerals Geosciences Centre Policy Organ Meeting, and events organized in collaboration with the International Telecommunication Union, such as the Global Innovation and Entrepreneurship Centre.
During the meeting, the Cabinet paid tribute to the late world marathon record holder Kelvin Kiptum and his coach Garvais Hakizimana, who tragically lost their lives in a road accident on February 11. Kiptum’s remarkable athletic feats, including his unprecedented marathon time of 2:00:35, achieved in Chicago on October 8, 2023, earned him worldwide acclaim. The government has pledged its support to Kiptum’s family to ensure he receives a dignified farewell worthy of his heroic legacy.
