Loading News Article...
We're loading the full news article for you. This includes the article content, images, author information, and related articles.
/
/
We're loading the full news article for you. This includes the article content, images, author information, and related articles.
Prominent businessman Buzeki Kiprop Bundotich has called for the privatisation of dormant, loss-making state-owned enterprises to unlock capital and reduce national debt. His remarks reignite a critical debate on Kenya's economic strategy and the role of state assets.
Businessman and political figure Buzeki Kiprop Bundotich has advocated for the privatisation of dormant, loss-making state-owned enterprises (SOEs), arguing it would free up capital and reduce Kenya's reliance on debt. In a post on X on Saturday, October 4, 2025, Buzeki stated, “Privatising dormant loss-making state firms isn’t selling out — it’s cashing in. Why keep borrowing debts when we’re sitting on idle assets? Free up cash for real growth. Economic take off is happening!!”
Buzeki's comments come amid ongoing national discussions about Kenya's public debt burden and the efficiency of state corporations. The government has frequently faced scrutiny over the performance of various SOEs, many of which have historically operated at a loss, requiring significant exchequer support. The debate around privatisation often pits economic efficiency against concerns about job losses and national strategic interests.
Kenya's legal framework for privatisation is primarily governed by the Privatisation Act of 2023, which repealed the 2005 Act. The new legislation aims to streamline the privatisation process, making it more efficient and transparent. It empowers the National Treasury to identify and recommend state-owned enterprises for privatisation, subject to parliamentary approval. The Act outlines various methods of privatisation, including public offerings, strategic sales, and concessions, with a focus on attracting both local and international investors.
The call for privatisation involves various stakeholders, including the government, which seeks to reduce its financial burden and stimulate economic growth; potential investors, who see opportunities in acquiring and revitalising these firms; and labour unions, who often express concerns about job security and workers' rights during such transitions. Economic analysts generally support the move, viewing it as a way to enhance efficiency and competitiveness, while some political factions may raise questions about the national interest and potential for asset stripping.
While privatisation can inject much-needed capital and improve efficiency, it carries inherent risks. These include potential job losses, particularly in overstaffed entities, and concerns about the transparency of the sale process. There are also debates about whether strategic national assets should be fully privatised and the potential for monopolies if not properly regulated. Conversely, continued state ownership of loss-making entities places a significant burden on taxpayers and diverts funds that could be used for essential public services.
Key unknowns include the specific list of dormant state firms targeted for privatisation under Buzeki's proposal, the projected timelines for such sales, and the estimated capital that could be unlocked. The government's immediate response to Buzeki's renewed call and the potential for new policy directives remain to be seen.
Observers will be watching for official government statements or policy shifts regarding the privatisation of state-owned enterprises. The performance of currently privatised or commercialised entities will also be a key indicator of the potential success of future sales. Any public discourse from key economic ministries or parliamentary committees on this matter will be significant.
This discussion is closely related to broader economic reforms, fiscal consolidation efforts, and debates surrounding the role of the state in business. Previous privatisation attempts and their outcomes offer valuable lessons for current policy considerations.
