ODM leader Raila has broken silence on government’s plan to privatize several state corporations.
The opposition leader criticized the move and said that it was ill-advised.
While he vowed to give a more comprehensive statement on the subject, Raila said that the targeted corporations should not be sold at all.
“The government wants to sell state corporations, Kenya Pipeline Corporation and National Oil Corporation are among them. KPC is a strategic investment that should not be sold under any circumstances. But the government wants to sell it,” he said on Tuesday.
Among corporates that the state seeks to transfer to private sector are the Kenya International Convention Centre(KICC), Kenya Pipeline Company and Kenya Literature Bureau.
Others are; National Oil Corporation, Kenya Seed Company Limited, Mwea Rice Mills, Western Kenya Rice Mills Limited, New Kenya Cooperative Creameries, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited and Numerical Machining Complex.
The government argued that KICC and KLB are being sold because they need to operate as Limited entities.
Others like the National Oil Corporation have been targeted for privatization because of they have been performing poorly financially.
During the Annual stock exchange Association Annual meeting in Nairobi, President William Ruto revealed that 35 companies will be transferred to the private sector.
“We have identified the first 35 companies that we are going to offer to the private sector. We have another close to 100 we are working with financial advisers on what to do,” the head of state said.
His deputy Rigathi Gachagua on the other hands, encouraged investors to invest in the parastatals and in return pay taxes as soon as they start making profits.
“Very soon, we are finalising the law, and all these companies will be available for sale. You have money to buy them. Once they are profitable, we shall collect corporate taxes and Pay As You Earn (PAYE),” Gachagua while in Mombasa.
He noted that the entities were making losses, thus becoming a burden to the government.
“You are aware we want to privatize all non-profit-making state corporations so that we can give them to you people because you are the ones who know how to do business,” the DP explained.
