We Are Wasting Billions- Ruto Defends Move To Sell KICC, 10 Other Parastatals

President William Ruto on Wednesday, December 13 addressed for the first time the government's controversial decision to put 11 parastatals up for sale, including the Kenyatta International Convention Centre (KICC).

While giving his opening remark at the Diaspora Investment Conference at KICC, Ruto claimed that some of the enlisted companies were receiving billions of shillings from the government to save themselves from collapsing.

He referenced a 10-year-old government report which suggested the disposal of the government assets, complaining that the government was not raking in growth and profit despite being bankrolled by the state.

Ruto thus committed to ensuring that the privatisation process sails through, blaming some officials for not accounting for the companies' mandate and jurisdiction, forcing him to make tough decisions.

"We are spending billions of shillings sustaining companies. We have 350 public companies that just take money from the government. Some of them you ask, what is this one doing, no one can tell you that," Ruto stated. 

"So some of those things we are going to make decisions and by the way, a report was already done saying that these 150 companies should be privatised because what they are doing can be done by the private sector. The private sector will give us more value out of them."

Ruto further argued that he had pushed for the privatisation of some entities through the report 10 years ago, only for the previous regime led by former President Uhuru Kenyatta to not actualise it.

The Head of State committed to implementing the privatisation plan despite the controversy it generated, insisting that it would prevent further haemorrhage of the country's economy.

"But the report has been here for 10 years because it is a very difficult decision to make. But I will make the decision, I promise you. I make the decision and take the consequences because Kenya must move," Ruto reiterated.

"I am just giving you an example of why we must save Kenya, and I promise you we are going to move this country in the right direction, we are going to make the difficult, smart decision."

On Monday, December 4, the High Court 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.

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.

"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.

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.