The Kenya government’s bid to sell eleven (11) State Enterprises has met its first challenge, predictably, following a court’s verdict to temporarily halt the process.
- In a case filed by opposition leader Raila Odinga’s Orange Democratic Movement (ODM) challenging the privatisation, the High Court on Monday issued a conservatory order suspending the implementation of section 21(1) of the Privatization Act and or decision made pursuant to that section until 6th February, 2024.
- Justice Chacha Mwita noted that the matter raised by ODM raises substantial constitutional and legal issues of public importance that require critical examination and consideration by the court.
- The government has invited Kenyans to submit comments on the privatization of eleven state-owned companies in the 2023 plan, before December 11.
“It is hereby ordered that the pleadings be served on all parties immediately and respondents do file responses to the petition with 5 days after service,” ruled Mwita. “The petitioner will then have 5 days after service, to file and serve a supplementary affidavit, if need be, together with written submissions to the petition not exceeding 10 pages.”
“The respondents will then have 5 days after service to file and serve written submission to the petition not exceeding 10 pages.”
According to the case before Milimani Law Courts, ODM through argued that the decision to sell the enterprises need to be subjected to a a national referendum. ODM says the parastals lined up for sale are of strategic importance to Kenyans and can only be privatized after a higher threshold of public participation like a national referendum.
- Big names in the programme include Kenya Pipeline Company, New Kenya Cooperative Creameries (NKCC), Kenyatta International Convention Center (KICC), National Oil Cooperation, Kenya Seed Company and the Kenya Literature Bureau (KLB).
- Others are Mwea Rice Mills (MRM), Western Kenya Rice Mills, Numerical Machining Complex, Vehicle Manufacturers Limited (KVM), and Rivatex East Africa (REAL).
- In justifying privatization of the enterprises, the government argued that the move will unlock working and investment capital for the entities following dwindling state resources.
The move will also address limited expertise in government on business and commercial operations.
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