Court fast-tracks case challenging Treasury powers

Treasury Cabinet Secretary John Mbadi before the Departmental Committee on Finance and National Planning, chaired by Molo MP  Kimani, on November 18, 2025. [Elvis Ogina, Standard]  

The High Court in Mombasa has declared an application challenging the new law giving the National Treasury Cabinet Secretary sweeping powers over State agencies urgent.

“I have read the application dated December 3, 2025 filed under a certificate of urgency. I am satisfied that the application is urgent and it is so certified,” ruled Justice Jairus Ngaah.
The application, filed by the Centre for Litigation Trust (CLT) Director Julius Ogogoh, challenges the constitutionality of the enacted Government-Owned Enterprise (GOE) Act.

The GOE Act has identified 65 State-owned enterprises for privatisation as part of efforts to boost efficiency and reduce the public wage burden.

The targeted entities include the Kenya Literature Bureau, National Oil Corporation of Kenya, Kenya Seed Company Limited, Rivatex East Africa Ltd, Kenyatta International Convention Centre, and New Kenya Cooperative Creameries, among others.

During the committee of the whole House, Majority Leader Kimani Ichung’wah introduced an amendment to remove the Kenya Pipeline Company (KPC) from Schedule 1 of the Bill.
He said this was because the company was already undergoing privatisation and, therefore, could not be categorised as part of the government-owned enterprises.

The government has set March 2026 as the target date to conclude the privatisation of KPC through an initial public offering (IPO) on the Nairobi Securities Exchange.
It plans to sell 65 per cent of its shareholding in KPC, a move expected to raise over Sh100 billion, while the State will retain a 35 per cent stake after the IPO.

In the case, Ogogoh argues that the Act reduces the role of Parliament and the public in the sale of strategic national assets, as it vests all powers in the Cabinet Secretary of the National Treasury.

He contends that the law has converted state corporations into limited liability companies governed by the Companies Act under the control of the Treasury Cabinet Secretary.

Ogogoh also argues that the Act creates a blurred regulatory framework and diffused accountability, since there is no separation between the State’s ownership role in the GOEs and its regulatory function.

“The roles and responsibilities of the State as owner, policymaker, and regulator lack clarity and are blurred, contrary to international best practices separating ownership from regulation,” states the petition filed by CLT lawyers.Ogogoh claims that the GOE Act was also hurriedly passed without adequate public input in violation of the Constitution of Kenya.