Privatisation could help Kenya unlock value from mature public assets while easing pressure on public finances according to President William Ruto.
Speaking during the bell ringing for the Kenya Pipeline Company IPO, whose proceeds have been channeled into the National Infrastructure Fund, President Ruto said the Fund model would reduce reliance on taxes and sovereign debt to finance development.
“Through this innovative funding model, we are easing pressure on the national budget, reducing taxes, and cutting on sovereign debt. This is how we will transform Kenya in our lifetime,” said the President.
The bell ringing signalled the start of trading for Kenya Pipeline Company shares.
Privatisation of KPC netted the government Ksh 106 billion, which is significantly higher than about Ksh 5 billion in annual dividends the state was receiving from the firm.
The government now plans to leverage the seed fund to attract private investment in order to finance large-scale infrastructure projects across the country through the Ksh 5 trillion fund.
“Using the National Infrastructure Fund, whose enabling law I signed on Monday, we will leverage the Ksh 106 billion to crowd in private capital and raise KSh1.2 trillion to finance the development of mega transformative infrastructure projects,” President Ruto added.
The Kenya Pipeline Company shares that opened for trading at Ksh 9 shillings per share hit 9 shillings and 40 cents.
