President William Ruto’s landmark plan to sell 65 state-owned enterprises is facing a fresh and formidable legal challenge, threatening to derail a cornerstone of his economic agenda. A lawsuit filed in the High Court seeks to halt the implementation of the new Privatisation Act, 2025, arguing it unconstitutionally sidelines Parliament and the public in the disposal of national assets.

This courtroom showdown brings to a head a simmering national debate: is the privatisation of key entities like the Kenyatta International Convention Centre (KICC), New Kenya Cooperative Creameries (New KCC), and the National Oil Corporation a necessary pill for economic recovery, or a fire sale of the family silver? For ordinary Kenyans, the answer could directly impact everything from the price of milk to job security and national pride.

Power, Public, and Parastatals

The latest legal petition, filed by the Centre for Litigation Trust (CLiT), contends that the new law dangerously consolidates power within the National Treasury. The Act grants the Treasury Cabinet Secretary sweeping authority to identify, approve, and oversee the sale of state firms, a move petitioners argue erodes the oversight role of Parliament guaranteed under the Constitution. "The Act represents a radical shift... without transparency, meaningful public input, or adherence to constitutional safeguards," CLiT asserted in its court filings.

Concerns over a lack of public participation have plagued the privatisation process. Previous court challenges against earlier versions of the privatisation plan, including one by the opposition ODM party, successfully argued that the sale of strategic assets required more significant public consultation. Activists have warned that the process could pave the way for the unconstitutional transfer of sovereign power to private, unaccountable corporate entities.

The government, however, maintains that the reforms are essential to invigorate the economy. Treasury Cabinet Secretary Njuguna Ndung'u has previously argued that restructuring is necessary to make state corporations more efficient, reduce their burden on the taxpayer, and unlock capital for development. The administration points to the potential for private investment to modernize firms and improve service delivery.

The Farmer's Fear and The Balance Sheet

The proposed sale of New KCC has sparked particularly fierce resistance from the agricultural heartland. Dairy farmers, who view the entity as a critical price stabilizer, have vowed to block its privatisation. They argue that they are the rightful owners, having built the company's assets through historical levies on their milk deliveries. "What will happen when it is taken over by an individual? We don't want to go back to a monopoly that will only benefit a few people," noted Richard Tuwei, chairman of the Kenya Dairy Farmers Federation, in a previous protest.

The financial health of the targeted firms presents a mixed picture, complicating the debate:

• Kenyatta International Convention Centre (KICC): Far from being a drain, the iconic facility has shown robust performance, generating KSh 1.07 billion (approx. $8.3 million) in revenue in the last six months of 2023, more than doubling its target.
• National Oil Corporation (NOCK): Auditor-General reports have painted a grim picture of NOCK, highlighting its failure to service a KSh 6.2 billion loan and questioning the value for money on its expenditures, making it a prime candidate for the government's efficiency argument.
• Kenya Seed Company: While specific recent profit figures are scarce, the company operates in a growing and increasingly competitive market, raising questions about the rationale for its sale.

While the government insists the move will reduce the fiscal burden and spur economic growth, trade unions have raised alarms over potential job losses and the infringement of labour rights. As the Judiciary prepares to weigh the constitutional questions, the nation watches, caught between the promise of economic reform and the fear of losing control over its most valuable public assets.