Private Businesses Given New Powers In Ruto Bill

President William Ruto has signed the Privatisation Bill, 2023 into law. 

It repeals the Privatisation Act, 2005 which was enacted before the current Constitution.

The Bill removes the bureaucracy in the privatisation of non-strategic or loss-making Government entities.

The ceremony, which took place on Monday, October 9 at State House, Kisumu, was witnessed by Deputy President Rigathi Gachagua and National Assembly Speaker Moses Wetang’ula.

President William Ruto after signing the Privatisation Bill, 2023 into law at State House, Kisumu on October 9, 2023. /PCS

Attorney General Justin Muturi, Cabinet Secretaries Eliud Owalo and Rebecca Miano and the Leader of the Majority Kimani Ichungw’ah were also present.

The Bill encourages more participation of the private sector in the economy by shifting the production and delivery of products and services from the public sector.

It improves the infrastructure and delivery of public services through the involvement of private capital and expertise.

Sponsored by the Leader of the Majority Party Kimani Ichung’wah, the Bill also provides for the establishment of the Privatisation Authority.

Ichung’wah noted that the Bill assigns the responsibility of formulating the privatisation programme to the Cabinet Secretary.

“The privatisation programme shall be submitted to and approved by Cabinet. The role of the National Assembly shall be to ratify the programme,” he explained.

In the new move, privatisation will be done through the initial public offering of shares, sale of shares by public tender, sale resulting from the exercise of pre-emptive rights or through any other method that will be defined by the Cabinet.

The Bill provides that the proceeds from the sale of a direct National Government shareholding shall be paid into the Consolidated Fund.

On Tuesday, March 21, Ruto's Cabinet approved the Privatisation Bill that effectively strips Members of Parliament (MPs) of oversight role in the sale of non-performing parastatals.

"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.

President William Ruto with Attorney General Justin Muturi and Deputy President Rigathi Gachagua (looking on) during the signing of the Privatisation Bill, 2023 into law at State House, Kisumu on October 9, 2023. /PCS