The National Treasury is gearing up for a bold move, projecting a hefty Ksh 149 billion windfall from selling government owned firms in the upcoming budget. It’s a high stakes strategy aimed at plugging the financial gap, with the funds expected to flow into the massive Ksh 4.2 trillion budget for the financial year starting July.
With Parliament currently scrutinizing the budget estimates, the Treasury is banking on this privatization spree to help cover the anticipated Ksh 3.3 trillion revenue from taxes and ministerial levies.
In the first wave of the grand sell off, 11 state owned giants are on the chopping block, including the iconic Kenya Pipeline, the prestigious Kenyatta International Conference Centre (KICC), and dairy giant New Kenya Co-operative Creameries (New KCC). These firms are just a taste of the over 35 enterprises set to be auctioned off.
But why the rush to privatize? With public debt skyrocketing and the memory of last year’s tax hike protests still fresh, the government is steering clear of raising taxes or introducing new ones. Instead, it’s opting to cash in on its vast portfolio of state assets.
Treasury Cabinet Secretary John Mbadi has hinted that the list of companies for sale is expanding beyond the initial 11, as the government goes all in on its privatization playbook after previous efforts hit roadblocks.
