Privatization Programme Status

Development Bank of Kenya (DBK) Ltd

To release funds invested by Industrial and Commercial Development Corporation (ICDC) for lending to industry and other enterprises and mobilize necessary resources to support the bank’s future growth, support the growth and stability of the financial markets, enhance corporate governance and broaden shareholding.

Updated detailed proposal submitted to the Government for consideration and approval.

East African Portland Cement Company
  1. Mobilization  of  resources  for  additional  investments,
  2. Enhancement of transparency and corporate governance;
  3. Broadening of shareholding in the economy;
  4. Development  of  the  Capital  Markets;  and
  5. Raising of resources to support the Government budget.

Updated detailed proposal and takeover option under consideration.

Kenya Wine Agencies (KWAL) Ltd.

To ensure its continued viability; Bring a Strategic Partner on board to obviate pressure from current suppliers.

Sale of 26% shareholding completed. Closing of sale of 4% shareholding to staff extended due to low uptake.

Tourism Finance Corporation (TFC) Hotels

To mobilize resources to rehabilitate and modernize existing facilities.

Updated detailed propApproval granted by Parliament for three hotels: Intercontinental Hotel Nairobi; Hilton Hotel, Nairobi and Mountain Lodge, through pre-emptive rights. Offers made but bids were too low due to low hotel occupancy in 2014 and 2015. Process on hold awaiting finalization of consultations within Government.osal and takeover option under consideration.

Public Sector Owned/Controlled Sugar Companies

To mobilize resources to rehabilitate and modernize sugar milling facilities to enhance their efficiency and competitiveness. To raise funds for the rehabilitation of the sugar factories; To address the excess debt through necessary restructuring

Transaction approved by Parliament on 21st April 2015. Announcement made on 15th May 2015 in the Daily Nation and on 22nd May 2015 in The Standard. Updating of due diligence work completed. Request for Expressions of Interest (EOI) advertised on 4th and 8th December 2015. EOIs re-advertised on 11th March 2016 with a submission deadline of 15th April 2016.

A Judicial Review application and Constitutional petitions proceedings against the Commission and the Attorney General with respect to various issues, including constitution of the Commission Board and devolution of the assets to the counties where the sugar companies are situated, were heard and judgment delivered on 10th November 2017.

In the ruling, the High Court of Kenya in Nairobi dismissed the petition (Petition No. 187 of 2016) thereby granting the Commission the go ahead to continue with the sale of the five government owned/controlled sugar companies. The High Court additionally directed that further consultative engagements be held between the National Government and the County governments under the Intergovernmental Relations Act, 2012.

The Commission is currently re-initiating structured engagements with all primary stakeholders in the sugar industry and has already commenced consultations with the Council of Governors with a view to co-operatively identify sustainable solutions to the bottle necks currently facing the operations of the state-owned sugar milling companies

Contact

National Bank of Kenya (NBK) Ltd

To mobilize necessary resources to support the bank’s future growth, support the growth and stability of the financial sector and the capital markets, enhance corporate governance, broaden shareholding and to recoup part of Government investment to finance other development projects.

Updated detailed proposal and takeover option under consideration.

Kenya Ports Authority (KPA) - Approved Projects.

Capacity expansion through mobilization of private sector capital and management resources. Three projects are included in the Privatization Programme. These include: Operationalization of the Eldoret Container Terminal; Outsourcing of stevedoring services; and Development of berths 11-14..

Transaction on hold awaiting the approval of recommendations to remove projects from the Programme following enactment of the PPP Act.

Contact

Consolidated Bank of Kenya (CBKL) Ltd

To mobilize necessary resources to support the bank’s future growth, support the growth and stability of the financial sector, enhance corporate governance and broaden shareholding.

Updated detailed proposal submitted to the Government for consideration and approval.

Agro-Chemical and Food Company (ACFC).

To address financial and management resource needs and the company’s excess debt.

Detailed proposal completed and submitted to the National Treasury for approval by the Government.

Transaction on hold awaiting decision on the next steps in view of the on-going State-Owned Enterprises Rationalization Programme.

Contact

Kenya Pipeline Company (KPC) Ltd

To mobilize resources for additional investments, enhance transparency and corporate governance, broaden shareholding, develop the Capital Markets and raise resources to support the Government budget.

Kenya Electricity Generating Company (KenGen)

To mobilize resources for additional investments, enhance transparency and corporate governance, broaden shareholding, develop the Capital Markets and raise resources to support the Government budget.

Due diligence work and Options Analysis completed. Detailed proposal prepared and submitted to the National Treasury. Rights Issue adopted as preferred option for mobilizing required resources.

Rights Issue completed. Awaiting the approval of recommendation of transaction removal from the Programme.

Kenya Meat Commission (KMC)

To address KMC’s future viability and the required financial and management resources through restructuring and privatization.

To address KMC’s future viability and the required financial and management resources through restructuring and privatization.

New Kenya Co-operative Creameries (NKCC) Ltd.

To address future governance and sustainability of its operations. Improve its competitiveness.

Due Diligence and Options Analysis completed. Detailed proposal finalized and submitted to the National Treasury. Updating of detailed proposal ongoing following Parliamentary recommendations and further consultations.

Numerical Machining Complex

To address mobilization of resources for investment in the company and the utilization of the company’s idle assets.

Due Diligence and Options Analysis completed. Detailed proposal finalized and submitted to the National Treasury. Updating of detailed proposal ongoing following Parliamentary recommendations and further consultations.

Isolated Power Stations

To facilitate comprehensive review of the most appropriate and effective way of operating the stations in future.

Transaction awaiting removal from the Programme following completion of due diligence and options analysis, preparation of detailed proposal and submission of recommendations to the National Treasury.