According to the announcement made by the Ministry of Finance on Monday, Kenya will launch its privatization effort by offering interests in 11 enterprises, including the state oil pipeline.
In light of the ever-increasing sums needed to service the nation’s debt, the government has decided to sell off 11 of the more than 35 businesses it owns to generate additional money.
According to the ministry, in addition to the Kenya Pipeline Company, which the government entirely controls, potential investors can acquire interests in one of the most important convention centers in Nairobi, as well as a textbook publisher, agri-business businesses, and industrial companies.
The ministry stated in a notice that the lucrative pipeline company monopolizes transporting gas and white oil products. The notification also encouraged the public to submit their thoughts on the proposal by December 11, as the constitution requires. The public hearing will take place on December 11.
“Privatization and restructuring are geared towards the government’s efforts for fiscal consolidation and spurring economic development,” the ministry stated further.
The East African nation of Kenya completed its most recent privatization of a state-owned enterprise in 2008 when it made an initial public sale of a 25 percent interest in the telecoms company Safaricom (SCOM.NR).
According to what the president indicated last week, the administration changed the legislation that governs the sale of state firms last month to minimize the bureaucracy that had caused the process to grind to a standstill.