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{
    "id": 1283549,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1283549/?format=api",
    "text_counter": 264,
    "type": "speech",
    "speaker_name": "Kikuyu, UDA",
    "speaker_title": "Hon. Kimani Ichung’wah",
    "speaker": null,
    "content": "approval of decisions at various stages, thus rendering the process inefficient. After the Act became operational in 2008, 26 state corporations were listed for privatisation. Only Kenya Wines Agencies Limited has been successfully privatized out of the 26 state corporations listed for privatisation in 2008. That speaks to the issue of inefficiency in the process that I have just mentioned. The problem with the Privatisation Act of 2015 is not just the layer of approvals and the bureaucracy that comes with it, but it has also led to a litany of protracted court cases that have bedeviled the privatisation process, amongst other challenges that have resulted in the slow implementation of this law. As I said, there have also been undue delays in the implementation process due to the multiple layers of approvals required by various institutions. There have been delays in providing information by entities identified for privatisation. Therefore, the new legal framework provided under this Privatisation Bill seeks to deal with some of these hurdles to create efficiencies in the provision of information as well as in the formulation of privatisation programmes to ensure that once a programme is approved, the multi-layer approvals are eliminated. I have just had a discussion with the Chairperson of the Committee overseeing this area. I am aware that the Committee had other views regarding the approval processes by Parliament. Parliament has a role in privatisation because State corporations are public entities. I agree with the Committee that Parliament must have a role as the people charged with oversight of public resources. Public resources have been deployed in state-owned corporations. Therefore, to privatize such enterprises, Parliament must have a role as the Government divests from those entities. Parliament must ensure active public participation in processes leading to the privatisation of public enterprises, as envisaged by our Constitution. However, the Constitution never envisaged a process where Parliament becomes a hindrance to efforts being made to improve the efficiency of privatisation engagements. The new legal framework provided by this Bill is partly informed by the feeling that the Privatisation Commission should have been included in the schedule of independent commissions in the Constitution of Kenya, 2010. The current privatisation law was enacted before the promulgation of the Constitution of Kenya in 2010. Under the 2010 Constitution, it became a prerequisite that only independent constitutional commissions would require prior approval of Parliament before people take office. The Privatisation Bill No.22 of 2023 seeks to address some of those issues, but since the Privatisation Commission is not a constitutional commission, we must not make it mandatory that the National Assembly approves the members of the commission. However, I agree with the Committee concerning the privatisation programme. There is a case for the involvement of Parliament because it involves public resources. However, the appointment of commissioners to the commission may not require the approval of Parliament because, in line with the Constitution of Kenya, 2010, only independent constitutional commissions require the approval of Parliament. This Bill seeks to create a new body called ‘Privatisation Authority’ to replace the ‘Privatisation Commission’. The proposal was that this being an authority – which will be governed by a board – it should be like other boards to state entities, which never require parliamentary approval. I have consulted the Chairperson of the Departmental Committee, and we agreed with what is provided in the Bill so that the Board can be set up without necessarily coming to the National Assembly or Parliament for approval. However, Parliament has an oversight role of the Board's dealings in matters to do with privatisation. Again, as I have stated, I agreed with the Committee that Parliament ought to have a role when it comes to the privatisation programme. Once established, the authority will have certain functions, including advising the Government on all aspects of the privatisation of public entities, facilitating the implementation of The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}