The government is set to sell its stake in 26 companies to private investors in a bid to fund the budget deficit, and repay debt.
Among those to be sold include 36 companies owned by the government were declared insolvent by the 2015-16 government audit report. The companies according to the audit report required at least Ksh118.76 billion to save them from collapsing.
The auditor general attributed their poor performance to pending debts amounting to billions and dating back to almost two decades ago. Also, unapproved increase in expenditure and double payment of debts owed to service providers was another reason for poor performance.
Here’s the list of the companies approved for sale:-
1. National Bank of Kenya
2. Consolidated Bank of Kenya
3. Kenya Meat Commission
4. Development Bank of Kenya
5. East African Portland Cement
6. Kengen
7. Kenya Pipeline Corporation
8. Kenya Ports Authority,
Five sugar millers —
9. Chemilil,
10. Sony,
11. Nzoia,
12. Miwani
13. Muhoroni.
Read: Mumias Sugar Company CEO Nashon Aseka Suspended
14. Agrochemical and Food Corporation,
15. New Kenya Co-operative Creameries,
16. Numerical Machining Complex 17. Isolated Power stations,
hotels such as:
18. Kabarnet Hotel,
19. Mt Elgon Lodge Ltd,
20. Golf Hotel Ltd,
21. Sunset Hotel Ltd
22. Kenya Safari Lodges and Hotels Ltd).
Also targetted are: Kenya Tourism Development Corporation-associated companies, which include:
23. International Hotels Kenya Ltd,
24. Kenya Hotels Properties Ltd,
25. Mountain Lodge Ltd and
26. Ark Ltd.
It is not yet clear how much the government will earn from the sale of the companies.
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