President William Ruto on Monday signed the Privatisation Bill, 2023 into law at Kisumu State House.
The new law repeals the Privatisation Act, 2005 which was enacted before the current Constitution.
The Bill removes the bureaucracy in the privatization of non-strategic or loss-making Government entities.
It encourages more participation of the private sector in the economy by shifting the production and delivery of products and services from the public sector.
The Bill also 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 further provides for the establishment of the Privatisation Authority.
The ceremony was witnessed by Deputy President Rigathi Gachagua and National Assembly Speaker Moses Wetangula.
Attorney General Justin Muturi, Cabinet Secretaries Eliud Owalo andRebecca Miano and the Leader of the Majority Kimani Ichungw’ah were also present.
Ichung’wah noted that the Bill assigns the responsibility of formulating the privatization programme to the Cabinet Secretary.
“The privatization programme shall be submitted to and approved byCabinet. The role of the National Assembly shall be to ratify theprogramme,” he explained.
In the new move, privatization will be done through initial public offering of shares, sale of shares by public tender, sale resulting from the exercise of preemptive 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.
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