A cabinet meeting chaired by President William Ruto on Monday rescinded an earlier decision to privatise 26 companies in which the government holds a stake.
Ruto reversed a cabinet decision made on August 12, 2009, to privatise the firms as a way to mobilise resources for additional investments and cut governments' involvement in businesses.
Among the entities that were to be privatised included KenGen and Kenya Pipeline.
At the time, former President Uhuru Kenyatta who was then the Minister of Finance announced that the privatisation of the two entities would lead to the enhancement of transparency and corporate governance as well as the broadening of shareholding in the economy.
Uhuru further argued that privatising KenGen and Kenya Pipeline would lead to the development of the capital markets and raise resources to support the government budget.
The Cabinet had also approved privatising three entities of the Kenya Ports Authority which include; -Eldoret Container Terminal, Outsourcing of Stevedoring services, and Development of Berths No. 11-14: -KPA.
The three KPA entities were to be privatised 100 per cent to enhance Kenya’s regional competitiveness and facilitate investment and economic growth.
The cabinet under the leadership of former President Mwai Kibaki had also agreed on the privatisation of, Nzoia Sugar Company, South Nyanza Sugar Company Limited, Chemelil Sugar Company, Muhoroni Sugar Company Ltd, and Miwani Sugar Company Ltd.
The argument was that privatising the loss-making sugar industries would help Kenya to meet the Government - COMESA sugar safeguard commitment to privatize sugar companies.
The privatisation of the sugar firms was also seen as a way to address the excess debt and the financial and human resources needed to run them.
Several hotels had also been earmarked for privartisation including; Golf Hotel Limited, Mt. Elgon Lodge Limited, Kabarnet Hotel, Kenya Safari Lodges and Hotels Limited, and Sunset Hotel Limited.
All the hotels were partly owned by the Kenya Tourist Development Corporation (KTDC).
The government had also sought to privatise KTDC-associated companies which include; Mountain Lodge Limited, Kenya Hotels Properties Limited, and International Hotels Kenya Limited.
To mobilise the necessary resources to support the bank’s future growth, and support the growth and stability of the financial sector and the capital markets, Kibaki’s government sought to privatise three banks.
These included; the Development Bank of Kenya, Consolidated Bank, and National Bank of Kenya.
Other companies that will now not be privatised include; East Africa Portland Cement, Kenya Wine Agencies, Agrochemical and Food Corporation and Kenya Meat Commission.
Others include; Isolated power stations, Numerical Machining Complexes, and New Kenya Co-operative Creameries.
