Home Business Treasury lists 11 state backed enterprises for privatization

Treasury lists 11 state backed enterprises for privatization

PHOTO | Courtesy

The National Treasury and Economic Planning ministry has published a list of 11 State Owned Enterprises it seeks to finalize their privatization by the end of the year.

According to 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.

The eleven identities for the planned divesture include profit making Kenya Literature Bureau (KLB), Kenyatta International Convention Centre (KICC), Kenya Seed Company Limited, Kenya Pipeline Company (KPC) and New Kenya Co-operative Creameries (N-KCC).

Treasury says despite five firms out of the eleven being profitable, they are operating in mature sectors and their sale is expected to generate additional revenue for the exchequer.

“KLB has been making profits over the years, with a turnover of Ksh 2.68 billion, and a net profit of Ksh 85 million and dividends of Ksh 8 million in the FY 2021/2022,” says Treasury in the 2023 Privatisation Programme.

KLB which is mandated to publish, print and disseminate quality literary, educational, cultural and scientific literature and materials is fully owned by the Government.

The government’s sale of its 52.88% shareholding in Kenya Seed through the Agricultural Development Corporation (ADC) is expected to generate additional revenue in the firm which serves the East Africa region through its subsidiaries, Simlaw Seeds Kenya, Kibo Seed Tanzania, Simlaw Seeds Uganda and Kenya Seed Rwanda.

Other firms which are up for sale include loss making National Oil Company of Kenya (NOCK), Numerical Machining Complex, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited.

“NOCK’s financial performance is poor, the Company has been making huge losses and reporting negative working capital over the years & its assets are highly geared with low liquidity,”

Others are those operating in mature sectors and they include Western Kenya Rice Mills Ltd and Mwea Rice Mills.

The public have until December 11 to submit their recommendations on the planned sale of the SOEs.