Kenya to Privatise 35 State Companies, President Declares

Kenyan authorities are planning to privatise 35 state-owned companies and consider opening up the capital of 100 others amid liquidity problems and economic difficulties.

The country’s economy has been severely impacted by Covid, Ukraine’s war, and a historic drought in the Horn of Africa. The International Monetary Fund (IMF) has urged Kenyan authorities to reform state-owned companies, particularly Kenya Power and Kenya Airways, which experienced record losses in 2022.

President Ruto has signed a law facilitating the privatisation of public companies. The IMF has agreed to a $938 million loan for Kenya, which is due to repay a $2 billion Eurobond next year

Meanwhile, the World Bank plans to provide $12 billion in support over the next three years. The Kenyan government has prepared a budget, which has been unpopular and led to violent demonstrations.