Court Blocks Ruto From Putting KICC & 10 Other Parastatals Up For Sale

President William Ruto's government through the Ministry of Treasury has been dealt a blow in its bid to put 11 parastatals up for sale, including the Kenyatta International Convention Centre (KICC).

The High Court on Monday, December 4 issued conservatory orders suspending the planned sale of the 11 parastatals following a case filed by the Orange Democratic Movement (ODM) headed by Raila Odinga.

"A conservatory order is hereby issued suspending implementation of section 21(1) of the Privatization Act 2023 and or any decisions made pursuant to that section, until 6th February 2024 given under my hand and seal of the Honourable court this 4th Day of December 2023," Justice Chacha Mwita ruled in part.

ODM earlier argued that the plans by President Ruto's government to privatise the parastatals had concerns as they were the state's assets financed by the public.

In his ruling, Justice Mwita expressed satisfaction that the petition raises substantial constitutional and legal issues of public importance that require critical examination and consideration by the court.

Consequently, the court ordered the respondents, which includes the State, to file responses to the petition within 5 days and that the pleadings be served on all parties immediately.

"That 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.

"That the respondent will then have 5 days after service to file and serve written submissions to the petition not exceeding 10 pages. That highlighting of submissions on February 6, 2024, at 11 am," added the ruling.

Among the companies that were targeted for sale by the government include Kenya Literature Bureau (KLB), National Oil Corporation (NOC), Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Limited.

The Treasury, led by CS Njuguna Ndung'u, also listed Kenya Pipeline Company, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, and Numerical Machining Complex as companies up for sale.

However, the government through Cooperatives Cabinet Secretary Simon Chelugui retracted earlier plans to sell the New Kenya Cooperative Creameries (KCC) as a parastatal.

"I want to state as follows. On March 22, 2019, the Cabinet resolved to remove KCC from privatisation. That position stands and can only be reversed by a similar Cabinet resolution," Chelugui indicated.