Cabinet Session Held at State House in Nairobi on May 2, 2024. PCS
In Summary:
- The Cabinet has approved the divestiture of state shares in six companies as part of economic reforms.
- The move aims to improve the management and governance of state corporations through the sale of shares on the Nairobi Securities Exchange.
The Cabinet has approved a proposal to sell government shares in six companies, a move aimed at fostering economic reforms and improving the management and governance of state corporations.
This decision was made during a Cabinet meeting chaired by President William Ruto on Tuesday.
A statement from the Executive Office of the President explained that the divestiture is part of broader institutional reforms to sustain economic turnaround.
“The sale of shares in the six companies, through the Nairobi Securities Exchange, will optimize the contributions of these investments in realizing our national development aspirations,” the statement read.
The companies slated for sale include:
- East African Portland Cement Limited (25.3%)
- Nairobi Securities Exchange (3.36%)
- Housing Finance Company of Kenya Limited (2.41%)
- Stanbic Holdings (formerly CfC Stanbic Bank Limited) (1.1%)
- Liberty Kenya Holdings (formerly CfC Insurance Holdings) (0.9%)
- Eveready East Africa PLC (17.2%)
In November of the previous year, President Ruto announced plans to sell shares in 35 state companies, including the Kenyatta International Convention Centre (KICC) and the Kenya Literature Bureau. KICC, an iconic landmark established under the Tourism Act of 2011, is among 11 state corporations set for sale.
Other companies / corporations lined up for sale include:
- National Oil Corporation
- Kenya Seed Company Limited
- Mwea Rice Mills
- Western Kenya Rice Mills Limited
- Kenya Pipeline Company
- New Kenya Cooperative Creameries
- Kenya Vehicle Manufacturers Limited
- Rivatex East Africa Limited
- Numerical Machining Complex
The government cited the need to incorporate the Kenya Literature Bureau and KICC into limited companies as a reason for their sale.
The National Oil Corporation is being sold primarily due to its poor financial performance.