Kenya Pipeline Privatization Began Under Kibaki

The Treasury Cabinet Secretary, John Mbadi, stated that the privatization of the Kenya Pipeline Company (KPC) was initially proposed during the administration of former President Mwai Kibaki. Mbadi made these remarks during a budget forum held in Meru County on Monday, February 2.

Mbadi indicated that Kibaki’s cabinet approved the sale of KPC in 2009, but the process was halted due to negative publicity. He suggested that the matter was delayed until his tenure.

Privatization History

The Treasury boss highlighted that the Kibaki administration successfully privatized other major companies, contributing to economic growth. He cited the example of KCB, which was fully government-owned before privatization, and Safaricom, where the government reduced its stake from 100 percent to 35 percent through successive share releases under both the Moi and Kibaki administrations.

Criticism of Previous Administrations

Mbadi questioned why he faced criticism for pursuing privatization efforts, unlike previous Treasury officials such as Amos Kimunya. He also criticized former President Uhuru Kenyatta for not releasing any shares, attributing current debt challenges to this inaction.

Impact of Previous Privatizations

Mbadi asserted that the privatization of KenGen and Safaricom has positively impacted the revenue and overall performance of both companies compared to their state ownership.

Current KPC Share Sale

The government has announced the sale of KPC shares at Ksh9 each, encouraging Kenyans to participate. While the Kenya Kwanza administration states the sale aims to generate funds for the state, opposition leaders have raised concerns.

Opposition Concerns

Opposition leaders have expressed skepticism about the share sale, suggesting it could benefit a select few rather than ordinary Kenyans. Critics have also voiced concerns that the sale will transfer control of government-owned firms to individuals with close ties to those in power.