Government has for the last 10 years invested heavily in reviving Rivatex

List: Rivatex, New KCC, Kenya Seed among 11 Companies Set to Be Privatized

The government has announced plans to privatise at least 11 state corporations and parastatals.

Treasury, in a notice on Monday, November 27, 2023, said the move is expected to help the government raise additional revenue.

It is also aimed at cutting the demand for government resources by the firms, improving the country’s regulatory environment, encouraging private sector participation in the economy and spurring competition.

Among the 11 is the Eldoret-based Rift Valley Textile Company commonly known as Rivatex as well as New KCC which has branches in Eldoret and Kitale as well as Kenya Seed.

The privatization of the three companies comes after huge government investments. Over the years, the government has invested billions in modernizing New KCC and Rivatex.

Other companies listed for privatization are Western Kenya Rice Mills Ltd and Mwea Rice Mills as well as the National Oil Company of Kenya (NOCK) which the Treasury says has been making losses.

NOCK’s financial performance is poor, the Company has been making huge losses and reporting negative working capital over the years & its assets are highly geared with low liquidity,” the Ministry said in the notice.

In addition, Treasury says five of the listed companies are making profits but they are operating in mature sectors and their sale is expected to generate additional revenue for the exchequer.

List of state parastatals proposed for privatization

  • Western Kenya Rice Mills Ltd
  • Mwea Rice Mills
  • National Oil Company of Kenya (NOCK)
  • Numerical Machining Complex
  • Kenya Vehicle Manufacturers Limited
  • Rivatex East Africa Limited
  • Kenya Literature Bureau (KLB)
  • Kenyatta International Convention Centre (KICC)
  • Kenya Seed Company Limited
  • Kenya Pipeline Company (KPC)
  • New Kenya Co-operative Creameries (N-KCC)

Kenyans and other stakeholders now have until December 11, 2023, to present their submissions on the proposed privatization.

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