The Kenyan government plans to privatize 35 state-owned companies and is looking at a further 100 firms following the recent passage of a law aimed at cutting red tape, the leader of the east African nation told a gathering of African stock market officials in Nairobi.
"We have identified the first 35 companies that we are going to offer to the private sector. We have another close to 100 we are working with financial advisers on what to do," the leader said.
According to the president, identified state-owned enterprises mired in bureaucracy will be able to attract more workers and fill the treasury with taxes if they are transferred to private hands.
"If we can unlock the potential of these would-be lucrative companies, especially those that trapped in government bureaucracy, and allow them to flourish as the private sector companies, they will employ more people, generate more resources and pay more taxes," Ruto said.
A law signed by the president in early October aims to speed up the privatization process of state-owned enterprises by giving the National Treasury the right to sell companies without parliamentary approval.
The Privatization Commission has lined up 25 companies 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.
According to the budget office, privatization of public enterprises could generate an annual revenue of 30 billion shillings (about $196 million).
Kenya last privatized a state-owned firm in 2008 when it issued an initial public offering for 25% of the shares in telecommunications company Safaricom.