Privatization Process



Approval of the Programme which is a list of the public sector investments and operations approved by the Cabinet to be considered for privatization and subsequently privatized once all required approvals are granted. To prepare the programme, the Commission reviews the assets and operations of public sector investments and operations and proposes a programme which it submits to the Government for approval by the Cabinet. A sector ministry may also propose that an institution under the sector be included in the programme. Once approved, the programme is gazetted by the Minister responsible for Finance.
2. PREPARATION OF DETAILED PRIVATIZATION PROPOSAL BY THE COMMISSION For every investment and operation in the approved Privatization Programme, the Commission is required to prepare a detailed privatization proposal for approval by the Cabinet. Each detailed proposal should set out the purpose of the establishment and existence of the asset or operation; the extent to which the purpose has been met including inadequacies in meeting that purpose; the rights or other entitlements and resources that have been provided to meet the purpose; recommendations for continuing to meet the purpose; if the asset is a state corporation – its financial position; the recommended method of privatization; the cost of implementing the proposed privatization; recommendations for dealing with the employees directly affected by the proposed privatization, including any benefits they might be owed; the benefits to be gained from the proposed privatization; a work plan for the proposed privatization; information regarding any written law, the repeal, amendment or enactment of which will be necessary for the proposed privatization to be carried out; and proposals on how Kenyans are to be encouraged to participate in the Transaction. As the Commission has adopted a lean institutional structure, to enable it to address the above issues adequately, it procures the services of transaction advisors who assist it to carry out detailed financial, legal and technical due diligence and comprehensive assessment of the needs both of the investment and the sector.
3. APPROVAL OF DETAILED PRIVATIZATION PROPOSAL Consideration and approval of the detailed privatization proposal by the Cabinet.
4. PRESENTATION TO THE FINANCE, PLANNING AND TRADE COMMITTEE OF PARLIAMENT Presentation of the approved detailed privatization proposal to the relevant Committee of Parliament by the Cabinet Secretary responsible for Finance.