House team asks Uhuru to explain sale of State firms

By David Ochami

The Privatisation Commission has been directed to publish details of the intention by the Finance Ministry to sell 26 parastatals.

Public Investment Committee (PIC) also questioned Finance Minister’s motives for the sale, and the commission’s criteria.

A PIC member who asked not to be named, claimed the real motive behind the divestiture is to raise money to bridge the budget deficit.

The committee grilled commission officials for more than three hours at Parliament Buildings over the intention to dispose off Kenya Pipeline Corporation, Kenya Ports Authority and 24 other state firms as outlined by Finance Minister Uhuru Kenyatta two months ago.

PIC felt the sale of KPC could destabilise fuel prices when the firm falls into private hands and said the commission’s explanations for selling the firms are not satisfactory.

Reports indicate PIC was dissatisfied with the commission’s privatisation programme.

Members felt it does not make economic sense to sell a strategic firm like KPC, which made a profit of Sh4 billion last year, to raise Sh8 billion.