Sell off –In the ongoing debate over the sale of State corporations, the Cabinet of President William Ruto has ratified sell of, at least, six State entities to private investors.
The agreement to pass the entities to private hands was passed during last Cabinet meeting held at the Statehouse Nairobi and chaired by President William Ruto andhsi deputy Rigathi Gachagua.
The six include Development Bank of Kenya where the government is a majority shareholder with 89.3% ownership with TransCentury owning the remaining 10.7%.
“The decision by our nation’s apex policy-making organ was informed by the fact Development Bank had transitioned into a fully-fledged deposit-taking commercial bank regulated by the Central Bank of Kenya,” Cabinet Office said through the dispatch.
As of 30th June 2023, DBK, which was established in 1964, had total assets amounting to Ksh17.9 billion.
The five other government owned enterprises set for sale are Kenya Safari Lodges and Hotels Limited, Golf Hotel Limited, Sunset Hotel Limited, Mt Elgon Lodge Limited and Kabarnet Hotel Limited.
The privatisation of the hotels and lodges is expected to stimulate growth in the hospitality industry through private investments. “The move aligns with the ongoing rebound of the tourism sector that has been buoyed by the Visa-Free entry regime in Kenya and promises to deliver increased employment and business opportunities in both the divested Enterprises as well as across the entire tourism sector,” the cabinet said.
The Kenya Safari Lodges and Hotels Limited was established in 1969 and is owned by the government through Tourism Finance Corporation (TFC), Mt Lodge Limited (MLL) and Kenya Wildlife Service (KWS). The hotel operates three outlets including Mombasa Beach Hotel, Ngulia Safari Lodge and Voi Safari Lodge.
Eurobond Issuance
Meanwhile, the Cabinet in its Wednesday sitting also welcomed the successful issuance of the country’s second Eurobond which saw Kenya raise Ksh234 billion ($1.5 billion) to buyback the $2 billion issued in 2014 and which matures later in June this year.
The bond, which will mature in 2031, now gives the administration fiscal room to implement its Bottom-up Economic Transformation Agenda as it embarks on the formulation of the 2024/25 budget.
