Why Ruto's Govt Want Quick Sale of State Companies
The sale of the companies come as public debt hits Ksh11.8 trillion as of June 2025...
✨ Key Highlights
Kenya's government aims to rapidly privatize state-owned companies to raise Ksh149 billion for the current budget, as revealed in the 2025-2026 Financial Year Annual Borrowing Plan. This move is part of filling a Ksh613.5 billion budget shortfall, with 207 non-strategic public enterprises identified for sale.
- Ksh149 billion is expected from privatization proceeds to fund the budget.
- Treasury Cabinet Secretary John Mbadi confirmed the plans, including a partial sale of Kenya Pipeline Company (KPC) via IPO and potentially more of the government’s stake in Safaricom.
- The sale of KPC, which could reduce the government's stake from 100% to 35% (worth around Ksh120 billion), is awaiting parliamentary approval after being reviewed by relevant committees.
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Government Seeks Funds Through Privatization and Loan Recovery Amid Scrutiny on Ad Spending - September 2025
The Kenyan government aims to rapidly privatize 207 non-strategic public enterprises to raise Ksh149 billion for the current budget, as detailed in the 2025-2026 Financial Year Annual Borrowing Plan. This action is part of a strategy to fill a Ksh613.5 billion budget shortfall. Concurrently, the Ministry of Cooperatives and MSMEs warned that Kenyans who default on Hustler Fund loans will be blocked from accessing loans from banks. This is a measure to increase repayment for the fund which has disbursed nearly Ksh70 billion. Meanwhile, a parliamentary committee is scrutinizing the State Department for Broadcasting and Telecommunications over the expenditure of nearly Ksh500 million on government advertisements, following flags from an Auditor-General's report.
