Government plans to sell its stake in assets

By Frankline Sunday

After the long delay in the privatisation process, the Government is hoping for greater success with sales of new companies.

National Treasury Cabinet Secretary Henry Rotich said the process is on-going with key assets set to be sold soon.

“We are still going on with the privatisation programme and two key transactions have already been approved,” he explained.

The two transactions include the sale of 26 per cent stake in Kenya Wine Agencies ltd (Kwal) held by Industrial and Commercial Development Corporation (ICDC).

Kwal, a major importer and distributor of wines and spirits in the East African region, has been lined up for privatisation since 2011.

Investment Secretary Esther Koimett said the privatisation programme had been delayed by long legislative process.

“The Privatisation Act spells out the process for privatisation, which has to be followed and some of the delays are attributed to the lengthy process,” she explained.

strategic investor

She added that the proposed sale of government stake in Kwal was on the table of the privatisation commission and transaction is expected to be conducted this year.

In the privatisation schedule, ICDC will restructure shareholding of the agency in which 26 per cent of its stake will be taken by a strategic investor. Four per cent of the shares would be reserved for staff and the rest given to institutional and individual investors.

Koimett said the transaction plan for government stake in the Hilton, Intercontinental and Mountain Lodge hotels have also been concluded.

The sale of the five State owned sugar factories in the Western Kenya sugar belts is also on course.

However, the Government will not be getting any direct funds from the privatisation of the said companies as had been expected earlier.

Rotich  explained that these companies have the pre-emptive right to the resources and they would use them to fund their own growth plans.Rotich was responding to a question  whether the sale of the assets would contribute towards the Sh1.6 trillion  2013/2014 financial year budget.