Musalia Mudavadi, the Prime Cabinet Secretary has defended the government’s decision to sell non-performing State-Owned Enterprises.
Speaking during Kenya Union of Post Primary Education Teachers (KUPPET) 25th Annual Delegates Conference on Saturday, Mudavadi said the move is a better debt management key to help in easing tax the burden.
“The economic circumstances are those that we need to come to terms with. Like I have given you and example of privatization. It is not as bad as people make it look.It is whether we do it correctly in accordance with the law so that the people of Kenya can benefit,” Mudavadi said.
He added that a lot of sensitization and learning is needed for the privatization process to be well understood.
Mudavadi’s comments came days after the High Court on December 4 temporarily suspended the sale of 11 state corporations following a petition filed by Orange Democratic Movement leader Raila Odinga.
High Court Judge Chacha Mwita said that the petition by ODM raises substantial constitutional and legal issues of public importance that require critical examination and consideration by the court.
ODM opposition
ODM said in the petition that the state-owned companies such as Kenya Pipeline Corporation (KPC), National Oil Corporation (NOC), Kenyatta International Convention Centre (KICC), and Kenya Seed Company (KPC) are of strategic importance to the people of Kenya and can only be privatized with the consent of the people through a referendum.
“The sale of the state corporations elicits national security concerns that directly threaten the sovereignty of the people and the Republic of Kenya,” the party said.
The Judge directed the ODM party to serve the petition upon the Speaker of the National Assembly Moses Wetang’ula, Attorney General Justin Muturi, and National Treasury Cabinet Secretary Njuguna Ndung’u.
“A conservatory order is hereby issued suspending implementation of Section 21(1) of the Privatization Act 2023 and or any decisions made pursuant to that section, until 6th February 2024 at 11 a.m.,” Justice Mwita stated.
The who have been listed as respondents (Wetangula, Muturi, and Njuguna, ) are to file their responses within 5 days, of being served.
Mwita said ‘highlighting of submissions will be done on February 6 next year.’The National Treasury had listed its intention to 11 parastatals which included the Western Kenya Rice Mills, New KCC, Kenya Vehicle Manufacturers, Rivatex, and Numerical Machining Complex.
