The IMF is in favour of state parastatals being privatised in order to increase their eligibility for financing for infrastructure development.
The International Monetary Fund (IMF) is supporting President Ruto’s budgetary measures, which include privatising state parastatals.
The restructuring of President Ruto’s budget to privatise state parastatals is supported by the International Monetary Fund (IMF).
One of the budgetary changes that the government needed to implement, according to papers in the IMF’s financing assessment for Kenya, was the reform of state businesses.
Government representatives and representatives of the international financial institution would work together to draught the privatisation plan, according to the government’s Fifth Reviews Under the Extended Fund Facility and Extended Credit Facility Arrangements report, dated July 19, 2023.
The goal of this was to free up funds for the government to support the state parastatals that were losing money.
“By the end of October 2023, the Cabinet is anticipated to adopt and publish a Draught Ownership Policy for SCs that outlines a new governance architecture and legal environment to increase performance and transparency.
“Part of the report stated that the authorities would submit draught amendments to Parliament by the end of February 2024, and they will also start working with IMF Technical Assistance on the legal reforms required to anchor the new ownership arrangements and other measures outlined in the State-owned Enterprise blueprint.”
The administration will also provide a thorough report on its investments in the state enterprises, along with a list of five outcomes, to Parliament.
Either the companies’ dissolution, merger, or privatisation will be recommended by the study.
Other conceivable results included transferring the companies to county governments and returning them to the national government agencies.
KICC is one of the eleven state enterprises that the Treasury has previously designated for privatisation.
The Kenya Literature Bureau (KLB), the National Oil Corporation of Kenya (NOCK), Rivatex East Africa Limited, Kenya Pipeline Company, Kenya Seed Company Limited, Mwea Rice Mills, and New Kenya Co-operative Creameries are a few of the organisations that are on the list for privatisation.
