President William Ruto has sparked controversy with his recent announcement to privatize 350 state-owned companies, despite growing opposition from the Kenyan public.

Speaking at the Kenya Diaspora Investment Conference (KDIC) held at the Kenyatta International Convention Centre (KICC), President Ruto defended his decision, asserting that the move is essential for fiscal responsibility.

"We are spending billions of shillings sustaining companies. We have 350 public entities that just take money from the budget, we are supporting them. Some of them, nobody can tell you what they are doing," Ruto stated, brushing aside concerns raised by citizens.

Addressing the dissenting voices, the President proclaimed, "It is a very difficult decision to make, but I will make the decision, I promise you. I will make the decision and take the consequences because Kenya must move. You can never go wrong by doing the right thing."

Ruto disclosed that a report recommending the removal of approximately 150 companies had been prepared years ago, and he was determined to push through with the privatization agenda.

Read More

  1. Ruto reshuffles Cabinet, foreign missions, state agencies in sweeping realignment
  2. Kenya battles rising cyber threats with new security measures
  3. Kenya’s debt soars to Sh10.8 trillion as pressure on finances mounts

He remained steadfast in his belief that selling some of these entities to the private sector could yield more value.

"Some of those things we are going to make decisions, and by the way, a report was already done saying these companies, about 150 of them, should be removed; that what they are doing can be done by the private sector. In fact, selling some of these companies to the private sector would give more value out of them," he insisted.

This action is in accordance with Section 21 (1) of the Privatisation Act of 2023, granting authority to the Treasury Cabinet Secretary to identify entities for inclusion in the Privatisation Programme.

However, the President's determination to proceed with privatization has encountered strong resistance from Kenyans who fear potential job losses and a negative impact on essential services.

The National Treasury and Economic Planning Ministry had previously issued a public notice in November, identifying state-owned enterprises like the Kenyatta International Convention Centre (KICC), the Kenya Pipeline Company (KPC), and the New Kenya Cooperative Creameries (KCC) for privatization.

Other parastatals slated for inclusion in the 2023 Privatisation Programme include the Kenya Literature Bureau (KLB), National Oil Corporation of Kenya (NOCK), Kenya Seed Company Limited (KSC), and Mwea Rice Mills Ltd (MRM).

As public opposition intensifies, President Ruto's defiance remains unwavering, setting the stage for a contentious debate on the future of these state-owned enterprises.