President William Ruto has on Monday signed into law the Privatization Bill 2023 which repeals the Privatisation Act, 2005.
“President William Ruto has signed the Privatisation Bill, 2023 into law. It repeals the Privatisation Act, 2005 which was enacted before the current Constitution. The Bill removes the bureaucracy in the privatisation of non-strategic or loss-making Government entities.” said State House.
The bill which was sponsered by the Leader of the Majority Party Kimani Ichung’wah, seeks to provide the establishment of the Privatisation Authority and invites the private sector to inject private capital and expertise in production and delivery of products.
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“The Bill encourages more participation of the private sector in the economy by shifting the production and delivery of products and services from the public sector. It improves the infrastructure and delivery of public services through the involvement of private capital and expertise.
Sponsored by the Leader of the Majority Party Kimani Ichung’wah, the Bill also provides for the establishment of the Privatisation Authority. Mr Ichung’wah noted that the Bill assigns the responsibility of formulating the privatisation programme to the Cabinet Secretary.
In the new move, privatisation will be done through initial public offering of shares, sale of shares by public tender, sale resulting from the exercise of pre-emptive rights or through any other method that will be defined by the Cabinet. The Bill provides that the proceeds from the sale of a direct National Government shareholding shall be paid into the Consolidated Fund.” said State House