By Billy Mijungu
Kenya stands at a decisive economic crossroads. It is time the country seriously considered selling key stakes in commercial state corporations to strategic investors and offering the remaining shares through Initial Public Offers. Done right, this could be one of the most transformative economic reforms of our time.Privatisation is not about surrendering national assets. It is a deliberate and strategic shift from state ownership to effective regulation.
The role of government must evolve from running businesses to ensuring that businesses run efficiently, transparently, and in the public interest. By divesting from state run enterprises and focusing on robust regulatory oversight, the government can redirect its energies and resources toward building a fair, competitive, and growth driven economy.
The logic is straightforward. If these corporations collectively hold assets worth over KES 10 trillion, yet the government earns less than KES 100 billion annually from them, something is fundamentally inefficient.
The economic value trapped in these corporations can be unlocked by letting private capital and management drive performance, innovation, and profitability. Meanwhile, the government can still benefit through taxes, dividends, and better regulatory returns without bearing the burden of inefficiency. Proceeds from privatisation can be a powerful tool for economic recovery. They can help reduce domestic debt, stabilise the fiscal balance, and ease pressure on the exchequer. Strengthening controls on capital repatriation and encouraging reinvestment of profits within the country will deepen the local economy.
The resulting corporate efficiency will spur competition, create jobs, improve service delivery, and raise productivity across sectors. Equally important, the rejuvenated activity at the bourse would inject much needed vibrancy into the Nairobi Securities Exchange. A surge in listings and transactions would attract foreign investors, boost foreign direct investment inflows, and increase government revenues from day to day trade activities. Privatisation could therefore act as a double engine driving both fiscal relief and capital market expansion.
But the greatest challenge remains trust. Who can Kenyans rely on to manage the sale of these assets and ensure that the proceeds are used transparently for development? This is where institutional integrity becomes the foundation of success. A strong, independent regulatory framework backed by public accountability can guard against corruption and guarantee that privatisation benefits all Kenyans, not just a privileged few.
Kenya’s prosperity will not come from owning businesses but from nurturing a dynamic private sector operating within a strong, fair, and transparent regulatory environment. The government’s strength must lie in oversight, not ownership.
