More than 20 government firms are set to be privatized in an effort to raise funds for government projects. This is after the Privatization Commission approved the sale of 26 state-owned corporations.
The state-owned firms that the Govt could dispose of its controlling stakes include power producer Kenya Electricity Generating Company (KenGen) which is 70 per cent government-owned, Kenya Pipeline Company, Kenya ports authority container deport in Eldoret, Kenya Ports Authority Development of Berths which are fully owned by the government at 100 per cent.
In the banking sector, the government is looking to sell its 22.5 per cent stake in National Bank of Kenya, 89.3 per cent stake in Development Bank of Kenya and stake allocated to other government corporation including a 50.2 per cent stake in consolidated Bank of Kenya Deposit Protection Fund as well as 48.8 per cent accounts in weak banks merged to form 48.8 per cent Consolidated Bank.
State-owned agricultural Corporation will see the highest number of privatized firms including the Agrochemical and food corporation (ADC), New Kenya creameries co-operative (KCC), Chemilil sugar, South Nyanza sugar, Nzoia sugar, Miwani sugar and Muhoroni Sugar companies.
According to the privatization commission, the process is aimed at mobilizing resources for other investments as well as broadening of shareholder in the economy, improving efficiency in the delivery of services through mobilization of private sector financial and management resources.
Other firms expected to be privatized include Numerical machinery complex, isolated Power stations, Kenya Wine Agencies, Kenya Meat Commission Kenya Safari Lodge, Sunset Hotel In Kisumu, Golf Hotel in Kakamega, Mount Elgon Lodge and Kabarnet Hotel.