The government plans to appeal the High Court’s ruling on the unconstitutional Privatization Act 2023.

President William Ruto’s administration has revealed plans to revive the privatization of eleven state-owned enterprises, including the Kenyatta International Convention Centre (KICC).

In its report to the International Monetary Fund (IMF), the Ministry of Treasury stated that it intends to appeal the High Court’s ruling, which declared the Privatisation Act 2023 unconstitutional.

The National Treasury also informed the Bretton Woods Institution that it has begun reevaluating seventy government entities to consider liquidation, privatization, or reintegration.

“The authorities have conducted financial assessments of seventy State Corporations based on their FY2022/23 accounts, offering specific recommendations and actions for each corporation. The National Treasury has provided a policy paper to the Cabinet, recommending the consolidation, dissolution/privatization, or reintegration of several State Corporations into the relevant line ministries,” part of the IMF report stated.

During the 2024/2025 financial year, the authorities have initiated efforts to enhance revenue generation for the national treasury through State Corporations, which includes improved revenue management and reporting, along with stricter enforcement of dividend remittances.

On September 24, the High Court in Nairobi ruled the Act unconstitutional, citing inadequate public participation in its formulation.

“The Constitution is the supreme law, and public involvement in participation is essential. The National Assembly does not do the public a favor by allowing them to participate,” the court stated.

Additionally, the court affirmed that KICC is a national monument and symbol of cultural heritage, and its proposed sale would infringe upon constitutional and cultural rights.

Through the Privatisation Act 2023, the government had intended to sell the Kenya Literature Bureau (KLB), KICC, National Oil Corporation (NOC), Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Limited.

Other entities slated for sale include the Kenya Pipeline Company (KPC), New Kenya Cooperative Creameries (KCC), Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, and Numerical Machining Complex.

In a cabinet communication issued on November 23, 2023, the government stated that one of the reasons for selling the Kenya Literature Bureau and KICC was to transition these parastatals into limited companies. It also noted that the other institutions were being privatized primarily due to their consistently poor financial performance and significant losses.