The Cabinet on Wednesday approved the privatisation of six State corporations including five hotels and one bank.
A despatch released after a cabinet meeting held on Wednesday, February 14, showed that the government is planning to divest from the Development Bank of Kenya (DBK).
"The decision by our nation’s apex policy-making organ was informed by the fact the Bank had fully transitioned into a fully-fledged Deposit-taking commercial bank regulated by the Central Bank of Kenya (CBK)," read part of a statement by the Cabinet.
Meanwhile, the hotels listed for privatisation include all facilities under the Kenya Safari Lodges and Hotels Limited banner including; Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge.
The other hotels the government is looking to privatise include; Golf Hotel, Sunset Hotel, Mt. Elgon Lodge, and Kabarnet Hotel Limited.
According to the government, the move is expected to stimulate the expansion of the nation's hospitality industry and grow individual units through private-sector investment.
The government also noted the move aligns with the ongoing bouncing back of the Tourism industry recently buoyed by the government's decision to grant global citizens Visa-free entry.
Three months ago, the government hinted at privatising 11 other parastatals, these included Kenya Literature Bureau (KLB), Kenyatta International Convention Centre (KICC), National Oil Corporation (NOC), Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Limited.
Other companies that the government expressed its intentions to sell include; Kenya Pipeline Company, New Kenya Cooperative Creameries, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, and Numerical Machining Complex.
In a dispatch, the government disclosed the move was informed by the corporations' perennial poor financial performance.
The government further revealed it was selling KLB and the KICC because the two parastatals needed to be incorporated into limited companies.
