A Kenyan court has temporarily halted the government’s plan to privatize state-owned companies, citing a legal challenge filed by an opposition party. The High Court judge issued an order suspending the privatization process until February 6, 2024.
In late November, the finance ministry announced its intention to sell shares in 11 companies, including an oil pipeline, a textbook publisher, and agribusiness firms. These companies are among over 35 entities targeted for privatization, partly to raise revenue for the debt-ridden government.
The opposition Orange Democratic Movement (ODM) party swiftly challenged the decision in court, arguing that the revised privatization law undermines parliamentary oversight of the process. The court agreed to temporarily suspend the privatization drive pending a full hearing.
The government’s privatization efforts have been largely stalled since the last state-owned company was privatized in 2008. In an attempt to expedite the process, the government amended the privatization law in October, eliminating bureaucratic hurdles.
However, critics argue that this change weakens parliamentary oversight, raising concerns about transparency and accountability.
The ODM party’s legal challenge poses a significant obstacle to the government’s privatization agenda. The court’s decision to suspend the process underscores the importance of robust oversight mechanisms in ensuring transparency and accountability during privatization efforts.