Court stops sale of KICC, other parastatals

By Peter Ochieng

President William Ruto's administration on Monday suffered a major blow, after the Court 'slammed brakes' on the proposed privatisation of 10 State parastatals, among them the Kenyatta International Convention Centre (KICC).

Justice Chacha Mwita issued conservatory orders against the move, on the backdrop of a petition filed by the Orange Democtratic Movement (ODM) party led by Raila Odinga.

The party argued against privatisation of the parastatals, indicating that their day to day operations are financed by public coffers.

"A conservatory order is hereby issued suspending implementation of section 21(1) of the Privatisation Act 2023 and or any decisions made pursuant to that section, until February 6, 2024, given under my hand and seal of the Honourable court this 4th Day of December 2023," Justice Mwita ordered.

The case will be mentioned on Wednesday, this week.

The petitioner will have 5 days after serving the respondents to file and serve a supplementary affidavit.

Respondents will then have 5 days to file and serve written submissions to the petition.

The State is seeking to privatise 10 parastatals.

Besides KICC, there is the Kenya Pipeline Company (KPC), Kenya Literature Bureau (KLB), National Oil Corporation of Kenya (NOCK), and the New Kenya Coorperative Cremeries (KCC) among others.

However, days ago, Simon Chelugui, Cooperatives Cabinet Secretary (CS) said that new KICC is not up for privatisation.

"I want to state as follows. On March 22, 2019, the Cabinet resolved to remove KCC from privatisation. That position stands and can only be reversed by a similar Cabinet resolution," he stated.

Odinga is particularly opposed to privatisation of KPC and NOCK, stating that the move will lead to skyrocketting of fuel prices, beyond the ability of the common mwananchi.