Treasury eyes Sh9.6bn from State-owned firms to plug budget deficit

The government expects to get Sh9.6 billion in dividend this year from companies it has shares in to plug budget deficit.

Speaking when he received cheques from Kenya-Re and Postal Corporation of Kenya (PCK), National Treasury Cabinet Secretary, Mr Henry Rotich, said the government has started reaping from the reforms instituted in State-owned firms.

Mr Rotich received Sh252 million from Kenya-Re and Sh17.3 million from PCK out of the profits the two made last year.

“We expect the new Bill that will be taken to Parliament soon to ensure the industry is well regulated to facilitate competition and penetration.

Kenya-Re should be among the vehicles to boost domestic savings that can be used to fund infrastructure projects,” he said.

The dividend from PCK were the first since 1999, which ICT Cabinet Secretary, Mr Fred Matiang’i, said was a signal of the turnaround that the parastatal had gone through following reforms initiated by the government.

“This is the beginning of the delivery of promises made by Jubilee government. For the first time since 1999, PCK has given dividend. This begins a new narrative that it does not need to be a point of loss making. We are going to carry out a raft of further reforms that involve integrative services such as Huduma Centres,” he said.

Mr Rotich said the profitability witnessed in the telecommunications sector, touching on PCK, Safaricom and Communications Authority where the government has stake has given impetus to roll out further reforms.

PCK intends to automate its services by early next year at a cost of Sh700 million to enable it to compete in the market.