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Post Reply: MPs Seek Public Input on Privatisation Bill Amid Concerns Over Government Wastage

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on August 13, 2025, 8:00 am</div><div id="pl-7500"  class="panel-layout" ><div id="pg-7500-0"  class="panel-grid panel-no-style" ><div id="pgc-7500-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-7500-0-0-0" class="so-panel widget widget_sow-editor panel-first-child panel-last-child" data-index="0" data-style="{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;,&quot;background_image_size&quot;:&quot;full&quot;,&quot;background_image_opacity&quot;:&quot;100&quot;,&quot;border_thickness&quot;:&quot;1px&quot;}" ><div
			
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	<p dir="ltr" data-pm-slice="0 0 []">Members of the National Assembly are calling on citizens to share their perspectives on the Privatisation Bill (National Assembly Bill No. 36 of 2025), a proposed legislation aimed at transferring state-owned corporations and assets into private hands. The invitation for public participation comes as parliamentarians criticize the government for inefficiencies and mismanagement of public funds, highlighting a contentious debate over the future of key national entities like the Kenya Pipeline Company (KPC).</p>
<p dir="ltr">The National Assembly, through its Clerk, Samuel Njoroge, announced a public hearing scheduled for August 15, 2025, at the Kenyatta International Conference Centre in Nairobi. The notice, published in major newspapers, invites Kenyans to discuss the implications of the Privatisation Bill, which has been committed to the Departmental Committee on Finance and National Planning and the Select Committee on Public Debt and Privatisation for review. The bill, which had its first reading in Parliament, seeks to formalize the process of privatizing state corporations, a move that has sparked mixed reactions across the country.</p>
<p dir="ltr">The privatization of state-owned enterprises has long been a polarizing issue in Kenya, with stakeholders from various sectors expressing both support and concern. Proponents argue that privatization could enhance efficiency, attract private capital, and reduce the financial burden on the government by minimizing reliance on state bailouts for underperforming entities. Critics, however, fear that selling off strategic assets like KPC could compromise national interests and lead to job losses or reduced access to essential services.</p>
<p dir="ltr">During a recent engagement with Treasury Cabinet Secretary John Mbadi, MPs emphasized the need for the government to prioritize curbing wastage and mismanagement of public resources as an alternative to privatization. They argued that addressing financial leakages within ministries, departments, and agencies could generate sufficient funds for critical national programs and development projects without resorting to the sale of profitable entities. Mbadi defended the privatization plan, outlined in Sessional Paper No. 2 of 2025, as a necessary measure to raise approximately 100 billion Kenyan Shillings to support budget implementation and ensure the completion of key development projects. He stressed that raising taxes is not a viable option, making privatization a critical strategy to create fiscal space without overburdening taxpayers.</p>
<p dir="ltr">The Treasury has introduced reforms to address concerns about government inefficiency, including the adoption of e-procurement systems and enhanced accountability mechanisms to reduce unnecessary expenditure. Mbadi assured legislators that these measures would significantly curb wastage across government operations. However, MPs remain skeptical, advocating for greater fiscal discipline and questioning the need to privatize self-sustaining entities like KPC, which operates over 1,300 kilometers of pipelines and transports approximately 14 billion liters of petroleum products annually.</p>
<p dir="ltr">The proposal to privatize KPC, approved by the government in July 2025, involves selling a portion of the state's shares to private investors and listing the company on the Nairobi Securities Exchange (NSE) by September 2025. This move aligns with the Privatisation Act of 2023 and reflects a broader policy shift toward private-sector-led growth. The government argues that privatization will attract professional expertise, improve operational efficiency, and facilitate regional expansion, including diversification into products like liquefied petroleum gas (LPG). The National Oil Corporation (NOC) is also under consideration for privatization, further signaling the government's intent to reduce its dominance in commercial enterprises.</p>
<p dir="ltr">The debate over privatization comes amid broader economic challenges in Kenya, including a liquidity crisis and a high debt repayment burden, which consumes 58.8% of government revenue. This has limited funds available for development and social services, prompting the government to explore alternative revenue-raising measures. The International Monetary Fund (IMF) has encouraged austerity measures, but public resistance to increased taxation, as seen in protests against the Finance Bill 2024, has pushed the government to consider privatization as a less contentious option.</p>
<p dir="ltr">Public participation in the Privatisation Bill is seen as a critical step in ensuring transparency and accountability in the legislative process. The National Assembly's call for input follows a history of public engagement in economic policy, as evidenced by the Finance Bill 2025 public participation exercise, which saw Kenyans actively voice their concerns at county-level meetings. Social media reactions to the upcoming hearing have been positive, with many urging citizens to attend in large numbers to influence the bill's outcome. Posts on platforms like X have emphasized the importance of public involvement, with users encouraging Kenyans to "own their voice" and shape the future of the country's economic policies.</p>
<p dir="ltr">As the August 15 hearing approaches, the Privatisation Bill remains a focal point of national discourse. The outcome of the public hearing and subsequent parliamentary deliberations will determine whether Kenya moves forward with its privatization agenda or opts for alternative strategies to address its fiscal challenges. The government faces the delicate task of balancing economic reforms with public sentiment, ensuring that any decision serves the broader interests of Kenyans while addressing the pressing need for financial sustainability.</p>
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