In a significant move, the Kenyan government revealed on Monday its intention to sell off 11 parastatals as part of an extensive privatization initiative.

Several prominent entities are slated for privatization under this program, including the Kenya Literature Bureau (KLB), Kenyatta International Convention Centre (KICC), National Oil Corporation (NOC), Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Limited.

Among the key reasons cited for the privatization of Kenya Literature Bureau and KICC is the government's aim to incorporate these parastatals into limited companies. Meanwhile, NOC is set to be privatized due to its persistent poor financial performance, marked by substantial losses over the years, coupled with negative working capital and low liquidity.

The decision to sell Kenya Seed Company, led by former Kirinyaga Woman Representative Purity Ngirici, stems from its recognition as a profitable and mature industry ready for private sector ownership. Maturity is also a factor in the proposed sale of Mwea and Western Kenya rice mills, along with Kenya Vehicle Manufacturers Limited.

The government outlined its plan to divest from New Kenya Cooperative Creameries, highlighting its significant potential and cyclical performance as key drivers for the decision. Additionally, the government aims to attract private sector capital and expertise by putting Rivatex East Africa Limited, an apparel-making company, up for sale. The move is underscored by the company's reliance on government funding, both for recurrent and development budget support.

Kenya Pipeline Company is also on the privatization list, with the government pointing to its monopolistic characteristics and the impact of ongoing legal cases on the decision-making process. President William Ruto's administration emphasized the need for increased competition in the market and the influence of legal challenges in driving the privatization of this strategic entity.