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{
    "id": 127933,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/127933/?format=api",
    "text_counter": 317,
    "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, to respond to Mr. Mungatana, Mr. Jirongo and Dr. Khalwale, it is quite clear, as I stated in the Ministerial Statement, that the desired objectives of the privatization of State corporations are stated in an Act that was passed by this House. As clearly stipulated under Section 18(2) of the Privatization Act, we have said that part of the reason is not a question of just selling assets but it is undertaken to improve infrastructure, delivery of services, reduce the demand on Government resources, generation of additional resources that can be used for other development programmes, the improvement of the regulation environment by getting the Government out of business and allowing business to do what it does best and the Government to regulate. It is also to improve efficiency of some of those entities as well as the economy as a whole. We are also hoping that through the same process, as has happened in a number of parastatals that have already been privatized, we will broaden the base of these enterprises and get Kenyans, through the Stock Exchange, to own shares and to participate in the family silver that the hon. Member is referring to. Mr. Speaker, Sir, with regard to the question by Mr. Kioni, since 2001 and 2008 a number of State corporations have been privatized. There is Mumias Sugar Company that generated about Kshs2.2 billion; KenGen generated about Kshs7.8 billion; Kenya-Re generated Kshs1.9 billion; Telkom Kenya generated Kshs24.3 billion and Safaricom Limited generated about Kshs50.8 billion. Funds generated from these sales have been used to fund development projects throughout the country. These companies now have a broad shareholding for Kenyans from every corner who are participating in the Stock Exchange as owners and receiving dividends from these entities. It has also given Kenyans an opportunity to also invest and participate in the profits that these companies make. In terms of performance, a number of companies have performed very well after privatization. Kenya Airways is an example. It has immensely supported the economy since privatization and is actually a case study of a successful privatization. Safaricom Limited was making profits but since privatization it has moved from 200,000 lines to over 14 million lines that we have today."
}