President William Ruto has promised reforms at Kenya Power and other state agencies aimed at enhancing operational efficiency and governance.
On Wednesday, July 31, 2024, Ruto promised governance improvements under the Ownership Policy for Government-Owned Enterprises approved by Cabinet in November 2023.
“Significant reforms at Kenya Power and other state enterprises are underway, aimed at enhancing operational efficiency and governance. This will restore investor confidence and ensure that these entities can leverage private capital more effectively,” he said.
“To fulfil our manifesto pledges, we have initiated key economic reforms, including governance improvements under the Ownership Policy for Government-Owned Enterprises approved by Cabinet in November 2023. This policy is set to enhance corporate governance and accountability, aligning the standards of state corporations closely with those of listed companies.”
Ruto spoke when Linzi Sukuk was officially listed on the Unquoted Securities Platform (USP) of the Nairobi Securities Exchange (NSE).
Ruto announced that a flexible regulatory framework is now in place to support Small and Medium Enterprises (SMEs) raising funds through the capital markets and that the NSE through the USP now has an SME capital raising platform.
“Investor confidence has been sustained by the fact that the financial markets have remained resilient with stable macroeconomic indicators. To maintain this trend, the Government is committed to entrenching a predictable business and economic environment through appropriate policy measures,” Ruto said.
Ruto on NSE performance
According to the president, NSE is the best-performing exchange in Africa with 44.43 per cent dollar returns in the first quarter.
“The ongoing reforms aimed at boosting economic performance and developing competitive capital markets are fundamental. A robust, efficient, and transparent capital market is vital for providing liquidity and raising capital, which in turn supports our overall economic framework,” Ruto added.
The president also insisted on privatising non-performing government entities to stimulate market activity.
“Our commitment extends to the privatisation of government-owned enterprises as part of our broader economic liberalisation policy. This will not only stimulate market activity but also support the government’s strategy to divest its stakes in key corporations, enhancing overall market dynamics,” he added.
Ruto says the government is mobilising savings through various capital market instruments, including Initial Public Offers (IPOs), treasury bonds, corporate bonds, and commercial paper issuances.
He says the government has also introduced innovative products like infrastructure bonds, green bonds, collective investment schemes, real estate investment trusts (REITs), asset-backed securities, exchange-traded funds, diaspora bonds, and derivatives.
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