The High Court has declared the Privatisation Act 2023 UNCONSTITUTIONAL in its entirety. This renders the proposed privatization of 11 parastatals, including Kenya Seed Company, KLB, and National Oil Corporation, as well as the sale of KICC, KPC, and New KCC, unconstitutional.
The Kenya International Convention Centre will not be for sale following the High Court’s ruling that the entire Privatization Act violates the Constitution.
According to Justice Chacha Mwita, the Act’s implementation is impossible due to the lack of significant public input prior to its passage.
The Orange Democratic Party, which brought the matter before the court, claimed that the Act, which made it easier to transfer state firms to private corporations, did not allow the public to express their opinions. Mwita concurred with the Orange Democratic Party’s comments.
Among the various types of assets given a chance at survival are the Kenya Pipeline Company, the Kenya Literature Burea, and the Kenya Seed Company.
Through counsel Jackson Awele, the ODM argued in court that the people’s approval through a referendum was required for the privatisation of the assets.
This is because they constitute a portion of Kenya’s sovereign wealth and hold significant cultural and strategic importance for the general public.
In his ruling, Judge Mwita said that the KICC is a property that belongs to the country and that any attempt to privatise it would violate both article 11(2) of the constitution and the Monument and Heritage Act.
The court declared that KICC is a national monument that requires protection and that the decision to privatize it is unconstitutional, null, and void.
On October 9, 2023, President William Ruto gave his signature to the Privatisation Bill, 2023, which is also known as the Impugned Act. He also selected October 27, 2023, as the day when the legislation would take effect.
The challenged Act abolished the Privatisation Act of 2005 and introduced various clauses.
The final outcome, according to the documents, would grant the executive branch of the government broad rights to sell valuable assets that make up Kenya’s national wealth.
ODM contended that when the National Assembly and the President passed the impugned Act, they failed to protect and preserve the Kenyan people’s sovereignty.
