The government, under the Privatisation Act of 2005, is set to sell National Bank, Consolidated Bank and the Development Bank.
The Privatisation Commission (PC) formed under the Act earmarked the three banks as well as 23 other parastatals in the initiative that will raise funds for government projects.
According to an assessment conducted by the commission, the 26 state-owned institutions registered dismal profits and heavily relied on the National Treasury.
The commission chairperson Henry Obwocha, however, lamented that the process had been delayed by bureaucracy.
[caption caption="PC chairperson Henry Obwocha"]
[/caption]
Mr Obwocha outlined that, in over a decade, the PC had only managed to sell 26% stake in Kenya Wine Agencies Limited (KWAL) in 2014 to South Africa’s Distell Group Limited, Africa’s largest producer of spirits, wines, ciders and ready-to-drinks.
In 2017, Distel went on to become the majority shareholder of KWAL after buying an additional 26.4% from Centum Investments bringing its shareholding to 52.4%.
Obwocha told The East African that the PC is currently reviewing some of the companies to evaluate their viability.
"Once we do the due diligence and find out that the company is doing well we hand it over to the National Treasury," he stated.
Some of the parastatals set for sale are Kenya Meat Commission, East African Portland Cement, Kengen, Kenya Pipeline Corporation, Kenya Ports Authority, and five sugar millers - Chemilil, Sony, Nzoia, Miwani and Muhoroni.
Others are: Agrochemical and Food Corporation, New Kenya Co-operative Creameries, Numerical Machining Complex and Isolated Power stations, hotels (Kabarnet hotel, Mt Elgon Lodge Ltd, Golf Hotel Ltd, Sunset Hotel Ltd, Kenya Safari Lodges and Hotels Ltd) and the Kenya Tourism Development Corporation associated companies which include International Hotels Kenya Ltd, Kenya Hotels Properties Ltd, Mountain Lodge Ltd and Ark Ltd.
[caption caption="File image of President Uhuru Kenyatta"]
[/caption]
