Buzeki backs privatisation of dormant state firms
By Faith Lagat, October 4, 2025Prominent businessman and political figure Buzeki Kiprop Bundotich has reignited debate over the privatisation of state-owned enterprises.
He has, in turn, urged the government to sell dormant, loss-making firms to unlock idle capital and reduce reliance on debt.
Call to privatise dormant entities
In a post on X on Saturday, October 4, 2025, Buzeki wrote, “Privatising dormant loss-making state firms isn’t selling out — it’s cashing in. Why keep borrowing debts when we’re sitting on idle assets? Free up cash for real growth. Economic take off is happening!!”
His remarks align with ongoing government efforts to divest from underperforming parastatals as part of broader fiscal reforms.
Parliament recently approved the privatisation of 65 per cent of the Kenya Pipeline Company (KPC) while retaining a 35 per cent stake. The Treasury expects to raise about Ksh100 billion from the sale, with funds channelled into critical sectors such as infrastructure and healthcare.
Kikuyu MP and National Assembly Majority Leader Kimani Ichung’wah supported the move during a parliamentary session on Wednesday, October 1, 2025. He defended the privatisation agenda, stating that it would focus on profitable corporations capable of attracting market value and that proceeds could be reinvested in other sectors.
Concerns have also been raised during public participation forums. In Machakos, during a session on the Privatisation Bill, 2025, residents called for accountability before any sales. Participants demanded that managers of loss-making parastatals be investigated, arguing that those responsible for mismanagement should face legal action.
Mumias East Member of Parliament (MP) Peter Salasya has declared his firm opposition to the planned privatisation of the Kenya Pipeline Company (KPC).
Taking to his official X account on Monday, August 18, 2025, Salasya dismissed any attempts to sway him with state influence or financial incentives.
Broader economic context
The government’s privatisation plan is supported by the Privatisation Act, 2023, and President William Ruto’s recent announcement to list KPC on the Nairobi Securities Exchange during the London Stock Exchange opening. Over 80 per cent of Kenya’s more than 200 parastatals rely on exchequer funding, and scrutiny continues over which entities will be sold.
Public hearings have been held in counties including Kajiado to gather views, with calls for more civic education and transparency in the process.