Ruto’s Proposal To Privatize State Corporations A Move In Right Direction
The Mt Kenya Times 
President William Ruto
By: Joseph Mutua Ndonga
Worth Noting:
- When president Kibaki came into power, the process of reviving it started in earnest. It was privatized and renamed the New KCC and former MP Matu Wamae appointed to steer it.
- Given this background, I’m persuaded to believe President William Ruto is on the right course.
- Having served the previous governments, he understands where the problem lies.
- He knows that President Kibaki and his successor Uhuru Kenyatta had the goodwill to turnaround these entities but they did not make it.
- For him, he also has the good will. However, he cannot do it alone. He will need the support of those he has entrusted with leadership of this country.
Since President William Ruto came into power, at least 11 richest State Corporations and Agencies valued at Sh6 trillions have had a change of the guard.
This resonated with Dr Ruto’s pledge during the campaigns to turnaround these Parastatals with a view to ensure they have become profit making entities.
Of these, 10 of them are set to be privatized. This is if the Finance Bill 2023 which is before parliament is passed into law.
It is worth to note that these Parastatals have been in existence for many years.
President Mwai Kibaki stood out as a renowned economist but even during his tenure his efforts to resuscitate them did not bear fruits worth to talk about.
The vested interests would always override the national interest.
Reason? The political class played a key role in the appointment of the chairpersons and chairmen of these State Corporations.
As a result, they would serve the interests of these politicians by allowing their cronies, friends and to sit in the top decision making organs-the management boards. This cleared the way for each to get a share of the profit.
Public interests will take a back seat when this happen.
Some would develop insatiable appetite that would leave these state entities in the verge of collapse and others go down.
Kenya Corperative Creameries (KCC) is a good example.
It was one of richest entity before it went down during the era of President Daniel Arap Moi.
When president Kibaki came into power, the process of reviving it started in earnest. It was privatized and renamed the New KCC and former MP Matu Wamae appointed to steer it.
Given this background, I’m persuaded to believe President William Ruto is on the right course.
Having served the previous governments, he understands where the problem lies.
He knows that President Kibaki and his successor Uhuru Kenyatta had the goodwill to turnaround these entities but they did not make it.
For him, he also has the good will. However, he cannot do it alone. He will need the support of those he has entrusted with leadership of this country.
A good of them served in the two governments.
So, it may be hard to tame them. They will capture the corporations and make them their cash cow.
The way forward is to privatize them. For Dr Ruto, I’m sure he knows this matter ought to be handled with utmost care.
Once advertised, the bidders’ history should be thoroughly scrutinized.
The two main considerations should be. The proprietors of the firms that qualify have the interest of Kenyan people at heart.
Secondly, the investors have success stories of managing and turning around the fortunes similar entities that had been run down by the state.
You would expect the multinational companies to buy some of the Parastatals.
For them, their success stories would go beyond the border.
Besides, the government would be expected to review the tax regime and enact laws that will attract both local and foreign investment.
As I conclude, allow me to say this. The good thing with privatization is that these create room for competition.
So, the new owners will work very hard. This is because they want to make money out of this. They know a huge chunk of the profit will go to government.
Again, if the entity collapses, they will become the biggest losers. They will not only lose the capital but also the assets which they had acquired through sweat.
To avoid these pitfalls, I’m sure they will run these entities with professional, disciplined and precision manners.
Joseph Mutua Ndonga is a writer and political analyst based in Nairobi
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