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{
    "id": 127922,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/127922/?format=api",
    "text_counter": 306,
    "type": "speech",
    "speaker_name": "Mr. Kenyatta",
    "speaker_title": "The Deputy Prime Minister and Minister for Finance",
    "speaker": {
        "id": 168,
        "legal_name": "Uhuru Muigai Kenyatta",
        "slug": "uhuru-kenyatta"
    },
    "content": " Mr. Speaker, Sir, the issue raised by Mr. Mungatana relates to whether the Government should sell profitable parastatals; how much money will be raised through the privatization of the parastatals; whether the institutions to be privatized are a burden to the Treasury to warrant their sale; whether the proposed privatization will protect employees who will be retrenched once investors have taken over the Government agencies and whether the Cabinet has reached consensus on the matter. Mr. Speaker, Sir, the desired objectives of privatization of State corporations are clearly stated under Section 18(2) of the Privatization Act enacted by this House in 2005. These include, the improvement of infrastructure and delivery of public services by the involvement of the private capital and expertise; the reduction of the demand for Government resources; generation of additional Government revenues by receiving compensation for privatizing; the improvement of the regulation of the economy by reducing conflicts between public sector regulatory and commercial functions; the improvement of the efficiency of the Kenyan economy by making it more responsive to market forces; the broadening of the base of ownership in the Kenyan economy and the enhancement and development of capital markets. These objectives clearly demonstrate that a State corporation does not need to be loss making in order to be privatized as there are many benefits to be achieved through privatization. It is for this reason that in the Gazette Notice I have outlined specific objectives to be achieved in each of the State corporations to be privatized. Mr. Speaker, Sir, one of the objectives of enacting the Privatization Act was to entrench the privatization process into law. The law, therefore, stipulates a very transparent process to be followed and disclosures to be made. Let me assure this House that this process is being strictly adhered to. Indeed, the Gazette Notice referred to by the hon. Member is a requirement of the Act under Section 17(3) of the Privatization Act, 2005. With regard to the approvals required under the Privatization Act, there are two main approvals by the Cabinet. This includes the approval of the programme which was granted on 11th December, 2008. That is what has been gazetted in line with the requirement of the Act, as I have just indicated. Some of the details sought by the hon. Member include expected proceeds. This will be known once the professional valuation of specific companies is undertaken as part of the preparatory work to be carried out by the Privatization Commission and once actual bids are received and evaluated. As part of the privatization process, the Act"
}