Thursday, November 30, 2023 – President William Ruto’s government recently put up more than 11 state-owned corporations for sale, among them, the famous Kenyatta International Convention Centre (KICC), in a move that shocked many.
However, unknown to many is that Ruto had no choice but to act after being forced by the International Monetary Fund (IMF).
According to the available documents, the IMF has been one of the forces behind the proposed reforms of state corporations which will see key institutions privatized.
The documents showed that reforms of the state corporations were highlighted as some of the fiscal reforms that needed to be undertaken by Ruto’s administration in order to guarantee payment of IMF loans.
On most occasions, the state corporations have been exposed for making losses forcing the government to intervene and fund some of their recurrent expenditure, which poses pressure on the country’s budget.
In its Fifth Reviews Under the Extended Fund Facility and Extended Credit Facility Arrangements report dated July 19, 2023, it was highlighted that the government would work alongside officials from the international financial institution in developing the privatisation programme.
Additionally, the government will provide a comprehensive report to Parliament on its investments in the state corporations with five outcomes noted.
The report will either recommend the privatization, merger, or dissolution of the corporations.
11 state corporations including KICC have already been earmarked for privatisation by the Treasury.
Among the entities listed for privatisation include; New Kenya Co-operative Creameries, New Kenya Co-operative Creameries, Rivatex East Africa Limited, Kenya Pipeline Company, Kenya Seed Company Limited, and Mwea Rice Mills.
Also earmarked for the programme include the Kenya Literature Bureau (KLB), and the National Oil Corporation of Kenya (NOCK).
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