President William Ruto of Kenya has made a significant announcement regarding the government’s decision to privatise 35 state-owned companies. The move comes in response to the operational inefficiencies caused by bureaucratic red tape, as reported by the BBC.
In a noteworthy development in October 2023, the Kenyan government passed a pivotal legislation aimed at facilitating the sale of state enterprises to private entities.
The East African nation has been grappling with a host of economic challenges, including soaring inflation, mounting government debt attributed to loans secured from the IMF and the World Bank for infrastructural ventures, and escalating prices of essential commodities such as food and fuel.
Furthermore, Kenyan citizens have been bearing the brunt of elevated taxation proposals, as the government seeks to curtail its reliance on borrowing.
The International Monetary Fund (IMF) has greenlit a loan amounting to nearly U.S.$1 billion while emphasizing the necessity for reforms within public sector entities, including the national power company and Kenya Airways; the latter recorded substantial losses during the course of 2022, according to AllAfrica.
In recent months, Kenyans have taken to the streets to demonstrate against the exorbitant costs of food and petrol, citing the adverse impact on their livelihoods. These protests have been further stoked by the concerns raised by Raila Odinga, the leader of the opposition party, regarding the cost of living in the lead-up to the presidential elections, which culminated in the victory of President William Ruto. Consequently, the government has been compelled to implement austerity measures, encompassing a reduction in official trips and concerted efforts to rein in its burgeoning debt, particularly to international financial institutions like the International Monetary Fund. This has consequently placed an onerous burden on citizens, demanding additional tax contributions to ensure the successful completion of pivotal infrastructure projects across the country.
President Ruto has revealed that an additional 100 companies are also slated for potential privatisation in the foreseeable future.
