Cabinet approves bill that allows privatization of public-owned enterprises without parliament’s nod
Written by Inka FM on 22 March 2023
The Cabinet has approved the Privatisation Bill, 2023, which will repeal the Privatisation Act, 2005.
This ushers in a more facilitative and non-inhibiting legal and policy framework that will oversee privatisation in the country.
The proposed Bill gives power to the Treasury to privatise public-owned enterprises without the bureaucratic approvals of Parliament.
According to the Cabinet, the sale of non-strategic, non-performing public entities will help improve the upgrade of infrastructure and the delivery of services to Kenyans.
The privatisation, it explained in its Tuesday session at State House, will also tame the demand for government resources and generate more funds to drive the Government’s development agenda.
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 Sh23.96 billion 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.
It further 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.
Cabinet on public debt
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 & 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.