A proposed law currently before the National Assembly could usher in sweeping changes in how Kenya privatises state-owned enterprises, with a powerful new authority set to take charge of the entire process.

The 2025 Privatisation Bill proposes the formation of a new agency, the Privatisation Authority, tasked with managing all future divestitures of public assets.

If enacted, the authority would be legally empowered to advise the government on privatisation deals, oversee the execution of sales, sign agreements, and even initiate or face lawsuits in its own name.

Alongside these responsibilities, the new authority would be entrusted with implementing individual privatisation proposals and coordinating the state’s long-term divestiture strategy.

Oversight of the authority would lie with a board composed of a chairperson appointed by the President, the Principal Secretary, the Attorney-General, the Managing Director of the authority, and six other members selected by the Cabinet Secretary.

Read More

  1. CAK seeks powers to regulate digital lenders amid surge in public complaints
  2. Court stops Skiza and Hello tune payouts to CMOs over revenue-sharing dispute
  3. Miwani Sugar land row reignites as lawyer rejects Sh9,394-acre settlement

The Bill spells out a structured approach to state divestitures through a formalised “Privatisation Programme”, a roadmap to be developed by the Cabinet Secretary and subsequently ratified by Cabinet.

According to the text of the Bill, “During the formulation of the Privatisation Programme, the Cabinet Secretary shall make appropriate consultations with persons who are likely to be affected by the privatisation of a public entity.”

The programme will identify which public entities are approved for privatisation and will serve as the legal foundation for any subsequent transactions.

Parliament will retain ultimate control over the process, with the power to either approve or reject the entire privatisation programme, placing legislative checks on the executive’s implementation.

Should the Bill pass in its current form, it would mark a significant shift from previous privatisation practices, consolidating authority within a single, legally established body.

The proposal comes at a time when pressure has mounted on the government to offload underperforming parastatals and reduce its fiscal burden.

How the Bill progresses through the legislative process in the coming months could determine the pace and scope of state divestitures going forward.