Cabinet approves divestiture of state’s shareholding in 6 listed companies
The Cabinet has considered and approved the proposed selling of the country's shareholding in six companies, through the Nairobi Securities Exchange (NSE).
The approval was made in a meeting chaired by President William Ruto at State House, Nairobi, on Tuesday, June 11, 2024.
According to a statement sent to newsrooms after the meeting, the divestiture of the six companies is part of the institutional reforms aimed at fostering a sustained turnaround of the economy particularly in the management and governance of State Corporations.
"As part of the institutional reforms aimed at fostering a sustained turnaround of the economy particularly in the management and governance of State Corporations, Cabinet considered and approved the proposed divestiture of the State's shareholding in six listed companies," the statement reads.
6 listed companies for divestiture
The six listed companies are East African Portland Cement Limited in which the government has a shareholding of 25.3 per cent, the National Social Security Fund (NSSF) in which the government holds 27 per cent, Nairobi Securities Exchange (NSE) in which the government holds a 3.36 per cent stake and Housing Finance Company of Kenya Limited in which the government holds 2.41 per cent of the shares.
Others are Stanbic Holdings (formerly CfC Stanbic Bank Limited) in which the government has a shareholding of 1.1 per cent, Liberty Kenya Holdings (formerly CfC Insurance Holdings) where the government has 0.9 per cent of the shares and Eveready East Africa PLC in which the government holds 17.2 per cent through KDC.
Realisation of development aspirations
The government says the divestiture in the six companies, through the sale of shares at the Nairobi Securities Exchange, will optimise the contributions of the investments in the realisation of Kenya's national development aspirations. 
The Cabinet in March 2023 approved the Privatisation Bill, 2023, which gave power to the National Treasury to privatise public-owned enterprises without the approval of Parliament.
Improve upgrade of infrastructure
According to the Cabinet, the sale of non-strategic, non-performing public entities will help improve infrastructure upgrades and the delivery of services to Kenyans.
The Privatisation Commission has lined up 25 entities for state divestiture including the Kenya Pipeline Company, the Kenya Ports Authority, the Kenya Tourist Development Corporation, the Consolidated Bank, the Development Bank of Kenya and the Agrochemical and Food Corporation.
The list also has ailing state millers Chemilil Sugar, South Nyanza, Nzoia, Miwani and Muhoroni.
The programme also proposes further share divestitures by the government in listed firms, including KenGen, East Africa Portland Cement and the National Bank of Kenya.
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