President William Ruto announced on Wednesday that Kenya plans to privatise several state-owned assets through initial public offerings (IPOs) to boost private sector investment and reduce reliance on external debt.
Speaking at the London Stock Exchange, Mr Ruto said the government would begin by listing the Kenya Pipeline Company on the Nairobi Securities Exchange.
He said, “We are committed to a structured, time-sensitive programme that identified and prepared a robust pipeline of key government assets to be privatised through the stock exchange or improved through private sector participation.’’
Mr Ruto emphasised that developing domestic capital markets could help Kenya reduce its dependence on foreign loans.
The move came as Kenya explores new funding avenues after scrapping tax increases worth more than 346 billion Kenyan shillings ($2.68 billion) following deadly nationwide protests last summer and a shift toward austerity.
At a separate event, The Africa Debate, Mr Ruto noted that shocks such as U.S. President Donald Trump’s elimination of USAID support this year underscored the need for financial self-reliance.
He said Kenya was now focusing on leveraging local resources and attracting private investment.
He cited upcoming public-private partnerships, including a fee-per-use model for hospital equipment and the securitisation of public assets such as roads.
“We are now going to be listing some of those bonds in the securities exchange so other investors can have a bite of the cherry,” Mr Ruto said. ($1 = 128.9500 Kenyan shillings)
(NAN)
