Ruto Kenya Kwanza government plans to sell KICC, Kenya Pipeline & 10 other state agency assets.
The Kenya Kwanza William Ruto government on Monday said it plans to sell 11 more state assets. The main include the KICC (Kenyatta International Convention Centre) and the cash-rich National Oil and Kenya Pipeline Company.
Additionally, the National Treasury also listed the Kenya Literature Bureau (KLB), Mwea Rice Mills Ltd (MRM), Western Kenya Rice Mills Ltd (WKRM), New Kenya Cooperative Creameries Limited (NKCC) and Numerical Machining Complex Limited (NMC) as conceivable acquisition assets for interested parties.
Even more, the Kenya Vehicle Manufacturers Limited, Kenya Seed Company Limited and Rivatex East Africa Limited are likewise amongst the state agencies to be sold by the Ruto government.
Below is the statement from the head of Treasury in Kenya.
Ruto to sell KICC Kenya Pipeline & 10 other state assets
“(It will help in) improving efficiency in the economy by encouraging more private sector participation, hence making the economy more responsive to market forces and competitions,” said Treasury yesterday.
“Privatization of KICC will generate additional revenue for the government and reduce the demand for exchequer support,” said the Treasury.
The Treasury said the privatisation of KPC and Nock will generate additional revenue for the government.
“This will encourage more private sector participation, hence improving efficiency and competition,” said the Treasury.
According to President William Ruto, Kenya will repay $300 million of its $2 billion Eurobond in December 2023, ahead of its June 2024 maturity date.
Why is Kenya selling KICC?
Kenya government is selling KICC because its facing acute liquidity challenges, steered by uncertainty encircling its ability to guarantee funding from monetary markets ahead of the maturity of a $2 billion Eurobond in June 2024.
According to President William Ruto, Kenya shall refund $300 million of its $2 billion Eurobond in December 2023. This is in anticipation of its June 2024 maturity date.
The determination comes after Kenya analyzed appropriation alternatives, including pursuing aid from multilateral lenders like the World Bank and IMF. As such, Kenya is pursuing loan syndications in order to foster the repayment or compensation of the same.