A new government agency formed under the newly enacted Privatization Act 2025 will now be in charge of disposing public assets taking over from the Privatization Commission.
The new law which repealed the 2005 act provides for the establishment of the Privatization Authority, a new body complete with nine board members including a chairman who will be a presidential appointee.
According to the act, the authority will have the powers to sue, be sued take, purchase, charge and dispose movable and immovable property and enter into contracts.
“The new amendment law repeals and re-enacts the regulatory framework for the privatization of public entities with a view to improving their efficiency, profitability, and accountability of public entities,” said Dr. Aurelia Rono, Principal Secretary, State Department for Parliamentary Affairs.
The Privatization Authority which will now takeover functions of the commission will be charged with executing privatization programme with directions from the cabinet secretary in charge of the National Treasury.
Additionally, the authority will advise the government on all aspects of privatization of public entities, facilitate the implementation of government policies on privatization, implement specific Privatization Proposals in
accordance with the Privatization Programme, and collaborate with other organizations within or outside Kenya.
The law also requires the authority to prepare long-term divestiture sequence plan, monitor and evaluate the implementation of Privatization Programmes.
The government in its privatization programme is also required ensure there is public participation in plans to sell assets and divest its holding in some entities.
In recent years, the move by the government to privatize some of its state owned enterprises including sugar companies and the latest being Kenya Pipeline Company has been met with public hostilities.
“It is worth noting that the new amendment law is also informed by a High Court judgement which declared the existing legal framework (the Privatization Act, 2023) unconstitutional for insufficient public participation; hence the re-enactment of the Act through the new amendment law to comply with the dictates of public participation,” added Dr Rono.
Those whose view will be sought during the privatization programme include persons with expertise in fields relevant to the entities to be included in the Privatization Programme, organizations representing persons who are likely
to be affected by the proposed privatization and members of the public.
