Govt to Sell KICC, Kenya Pipeline & 9 Other Parastatals


The National Government on Monday, announced that 11 parastatals were being put up for sale.

Some of the companies to be sold through the privatisation program include; Kenya Literature Bureau, Kenyatta International Convention Centre (KICC), National Oil Corporation (NOC), Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Limited. 

Other companies that the government is looking to sell include; Kenya Pipeline Company, New Kenya Cooperative Creameries, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited and Numerical Machining Complex.

The Government noted that it was selling the Kenya Literature Bureau and KICC because the two state entities were required to be incorporated into a limited company. 

President William Ruto chairing a cabinet meeting at State House on Monday, November 27, 2023

PCS

On the other hand, NOC is being privatised due to poor financial performance with huge losses, negative working capital and low liquidity. 

Kenya Seed Company chaired by former Kirinyaga Woman Representative Purity Ngirici was identified as a profitable and mature industry which was ready to be sold to the private sector. 

Other companies that were identified as mature hence necessitating a sale included; Mwea and Western Kenya rice mills, and  Kenya Vehicle Manufacturers Limited. 

On the reason why the government was disposing the New Kenya Cooperative Creameries, it was explained that while the company had high potential, it was exhibiting cyclical performance. 

Apparel-making company Rivatex was earmarked for sale so as to attract private sector capital and expertise and reduce the need for Government of Kenya (GOK) funding. 

Additionally, Rivatex was identified as a loss-making company that relied on GOK for recurrent and development budget support. 

More to follow





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