Khalwale Contradicts Ruto's Cabinet Decision To Sell Public Businesses
The former Ikolomani Member of Parliament had argued that allowing the privatization of companies would see the residents lose...
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Kakamega Senator Boni Khalwale on Saturday, April 1 opposed President William Ruto's Cabinet's decision to privatize parastatals without the approval of Members of Parliament.
Speaking during an interdenominational service in Malava, Kakamega County, Khalwale was opposed to the sale of Mumias Sugar and Nzoia Sugar companies, among those put up for sale.
The former Ikolomani Member of Parliament had argued that allowing the privatization of companies would see the residents lose over 35,000 acres of land that were donated to them by their ancestors.
Entrance to Mumias Sugar Company. /FILE
"You stated last week that companies would be privatised. Among them, we have some of our sugar milling factories, Nzoia and Mumias Sugar Company," Khalwale stated.
"Our forefathers donated 12,500 acres for Mumias Sugar and 24,500 to Nzoia Sugar Company. If you privatise, someone will go away with ancestral land."
Khalwale added that privatising the two sugar mills would deprive the local community of their source of employment and economy.
While clarifying that he was not opposing President William Ruto's government, he expressed fear that the move would kill the little that they are left with in terms of the sugar economy.
"We will not support the issue of privatising Mumias and Nzoia Sugar Company. We cannot, and this is not out of disrespect for the President or the government.
"That is the little we have in the economy of the sugar industry," he added.
Instead, Khalwale challenged the Kenya Kwanza government to avert the importation of cheap sugar through cartels because it kills the economy of the operating factories and derails plans to revive Mumias and Nzoia Sugar companies
He implored Deputy President Rigathi Gachagua who was present at the function to have a talk with Ruto over the matter, adding that his contribution to the sugar industry is what earned him votes.
"I'm asking you that when you get back to Nairobi, just know that we are the ones who voted for Ruto here because he gave us a machine at the sugar factory in Butali. When I speak about Ruto regarding sugarcane, people believe me," he added.
According to a despatch from State House, the Cabinet explained the benefits of the new bill that would repeal the Privatisation Act of 2005.
"To support the State’s divestiture from non-strategic sectors of our national life, Cabinet approved the Privatization Bill. The revised policy shift seeks to revitalize Kenya’s Capital Markets through the review of the framework for State divesture as part of a wider reform process targeting Public Enterprises," read the dispatch in part.
The Privatization Bill of 2023 would usher in a more facilitative and non-inhibiting legal and policy framework that will oversee privatisation in the country.
The proposed Bill had sought to give power to the Treasury to privatise public-owned enterprises without the bureaucratic approvals of Parliament, thus making it easier for the government to sell public companies to private investors.
President Ruto chairing a Cabinet meeting on March 21, 2023. /STATE HOUSE KENYA
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