Friday, May 3, 2024 - The Government of President William Ruto has resolved to wind up 25 State companies following recommendations made by a committee, asserting that this would be the best course of action.
In the budget estimates for the Financial Year 2024/25
tabled in Parliament, the State proposed the winding down after concluding that
some of the state corporations were operating in the industry well covered by
the private sector.
Without revealing the specific companies, the Treasury proposed
that the duties carried out by the companies be returned to respective
ministries.
The decision was born out of the Ministry of Treasury's
decision to expedite its review of all Semi-Autonomous Government Agencies
(SAGAs) through its newly established high-level risk committee.
A preliminary assessment whose findings are expected to be
tabled in Parliament targeted 288 state corporations to determine their
viability and/or recommend necessary action.
In the proposed findings, 158 state corporations are to be
retained while 41 will be merged for carrying out duplicate roles.
Other proposed changes include 40 state corporations set to
be restructured, 7 whose functions require policy guidance, and 25 earmarked for
privatisation.
"25 entities are earmarked for privatisation and is
being implemented in accordance with the Privatisation Act, 2023," the
estimates read in part.
"They are in various stages of implementation. The
proposed 2023 privatisation programmes were suspended by the courts."
This comes even as there is an active case in court stopping
Ruto and his government from privatizing State companies.
Former Prime Minister Raila Odinga’s ODM moved to court and
walked out with conservatory orders barring Ruto from privatizing any State firms.
The Kenyan DAILY POST
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