16 firms to be sold to the public

The Cabinet on Thursday approved a major privatisation plan that will see 16 State firms sold to the public, and private companies invest in the energy, roads and water sectors.

Among the companies the public will be allowed to buy shares in or that private firms will be allowed to buy into are Kenya Pipeline Company, Chemelil Sugar Company, Nzoia Sugar Company, Miwani Sugar Company and Consolidated Bank.

Others are Kenya Meat Commission, New Kenya Co-operative Creameries, Kenya Wine Agencies Ltd, National Bank of Kenya, Development Bank of Kenya, Muhoroni Sugar Company, Sony Sugar Company and Kenya Tourism Development Authority and some of its hotels.

The Government will sell more of its Kengen shares. At the Kenya Ports Authority, the private sector will be invited to construct a container terminal at Eldoret and stevedoring services and development of berths 11-14 will be outsourced.

A statement issued after the meeting said the Cabinet had approved the policy, legal and institutional framework for Public Private Partnerships ( PPP ).

The framework provides the modalities under which the private sector can undertake to provide a certain service or product for the benefit of the public for a specified period of time.

Through PPP, the country can leverage public sector financial resources with private sector investments. PPP will especially be critical for the financing of the flagship projects under Vision 2030.

Under the framework, the private sector can enter into a management contract, a lease, a concession or a build-own-operate and transfer agreement with the Government.

Meeting under the chairmanship of President Mwai Kibaki at State House Nairobi, the Cabinet approved the establishment of a PPP steering committee to oversee the process.

It also approved a Privatisation Programme that will see a number of public corporations enter into partnerships with the private sector.

Additional reporting by PPS