The Executive and the Bicameral House, National Assembly and the Senate could be headed on a warpath when the cabinet approved and state sponsored Privatisation Bill, 2023, which will repeal the Privatisation Act, 2005 is tabled by National Assembly Majority Leader Kimani Ichungw’ah on the floor of the House sanctioning National Treasury Cabinet Secretary to privitise state owned firm without the input of Parliament.
During a sitting chaired by president William Ruto at State House today, the Executive top organ, the cabinet approved to strip Members of Parliament their oversight oversight role in the sale of state-owned corporations.
The government holds that this will shorten the process of selling parastatals without much bureaucratic red-tapism of parliament.
“This ushers in a more facilitative and non-inhibiting legal and policy framework that will oversee privatisation in the country.” A quick dispatch to newsrooms from State House reads in part.
Should the Bill be passed in its current format, Treasury CS Njuguna Ndung’u will be responsible for formulation and development of the government’s privatisation programme subject to cabinet approval, a mandate that is currently held by the commission.
The CS will pick parastatals to be privatised before the authority takes over to implement the sale.
“The Cabinet Secretary shall identify and determine the entities to be included in the privatisation programme.” The Bill provides in part.
The statement added that the sale of non-strategic, non-performing public entities will help to finance upgrade of infrastructure and improve delivery of services to Kenyans.
It also noted that privatisation will tame appetite for government resources.
Effectively, the proposed Bill gives power to the Treasury to privatise public-owned enterprises without the bureaucratic approvals of Parliament.
Further, the Cabinet noted that counties affected by drought will slide further into more severe drought due to the January to March dry season.
In its response to the crisis, the cabinet allocated Sh23.96billion for the April to October 2023 period for interventions in food assistance, water, livestock and peace and security.
It said the sectors most affected by the crisis include food security, livestock, water, crops production, education, among others.
It noted that the situation has been complicated by the rising frequency of insecurity in Turkana, Samburu, Baringo, West Pokot, Laikipia, Marsabit, Isiolo and Garissa.
The Cabinet also granted approval for the Government to pursue a negotiated commercial settlement for the Commercial Contracts and Financing Agreements for the Arror, Kimwarer and Itare Dams.
Further, the cabinet allowed the National Treasury to engage the Director of Public Prosecutions and provide the relevant information on the public interest implications arising from the huge financial exposure of Government arising from its unmet obligations in respect of the Commercial and Financing Agreements for the three dam projects in order to facilitate a stay of the ongoing international arbitration proceedings and a negotiated commercial settlement.
The top decision-making body of the Government also approved the appropriate restructuring of the Government of Kenya outstanding debt service obligations under the Financing Agreements for the Arror, Kimwarer and Itare Dams.
Crucially, the Cabinet reinstated the mandate, functions and operations of the Technical and Vocational Education and Training-Curriculum Development Assessment and Certification Council (TVET-CDACC).
This means that TVET-CDACC will now be tasked with the designing and development of learner-centred, demand-driven, industry-led TVET curricula for the training institutions’ examination, assessment and competence certification.
The Cabinet also approved the establishment of the National Alternative Dispute Resolution Policy which will go a long way in decongesting the courts.
It also gives the public the opportunity to resolve disputes through means fashioned to respond to the real and practical world.