The planned privatization of a number of state corporations by the government suffered a setback Monday with the High Court momentarily halting the process.
In a petition filed by the Orange Democratic Movement, the court announced the suspension of the sale until the issues raised by the opposition party are heard.
“A conservatory order is hereby issued suspending implementation of section 21(1) of the Privatization Act 2023 and or any decisions made pursuant to that section, until 6th February 2024 GIVEN under my hand and seal of the Honourable court this 4th Day of December 2023,” ruled High Court Judge Chacha Mwita
In his ruling Monday, Justice Mwita noted that he was “satisfied that the petition raises substantial constitutional and legal issues of public importance that require critical examination and consideration by the court,”
The parties in the case are expected to make their submissions on 6th February 2024.
The National Treasury has published a list of 11 State Owned Enterprises it seeks to finalize their privatization by the end of this year.
According to the Treasury, the privatization and restructuring of the firms is expected to help the government raise additional revenue, cut demand for government resources by the firms, improve the country’s regulatory environment, encourage private sector participation in the economy, and spur competition.