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{
    "id": 1283550,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1283550/?format=api",
    "text_counter": 265,
    "type": "speech",
    "speaker_name": "Kikuyu, UDA",
    "speaker_title": "Hon. Kimani Ichung’wah",
    "speaker": null,
    "content": "government policies on privatisation, and implementing specific privatisation proposals per the privatisation programme. Hon. Deputy Speaker, Part II of this Bill provides for the functions of this Board and the Cabinet Secretary, which include providing policy direction on matters related to privatisation and developing and formulating privatisation programmes. During the Committee of the whole House, we should look at how Parliament or the people's representatives can be involved in the privatisation programme or policies that the Cabinet Secretary will formulate. This part also provides for the appointment and functions of the managing director, the corporation secretary, and the staff of the authority. Part III of the Bill deals with the privatisation programme. Clause 18 of the Bill provides that the Cabinet Secretary shall formulate a privatisation programme following the Privatisation Act and have it approved by the Cabinet. It will specify the public entities identified and approved for privatisation and serve as a basis for undertaking the privatisation. This part makes provisions for the formulation of the privatisation programmes, including identification of entities to be included in the programme in line with considerations, public consultations during development, and notification by Parliament before implementation of the programme. It further specifies the validity period of the programme as not exceeding five years from the date of gazettement, and such validity may only be extended for a further 12 months. Therefore, in line with this part, such a programme can only run for a maximum of six years. You can imagine the privatisation programme of 2008 of the 26 State corporations I have mentioned - only Kenya Wine Agencies Limited (KWAL) has been successful. This programme has been in existence since 2008, and we are now in 2023, which is 15 years later. We are now putting a time limit under this new law. A privatisation programme can only run for five years. If, within those five years the Government fails to finish that programme, they can only seek a further extension of 12 months to conclude. This is to ensure that there is efficiency in the processes of privatisation of state-owned entities. There is a reason as to why there is a time limit. This is informed by the understanding that time is of the essence if one were to derive value from state entities earmarked for privatisation. This is not just in terms of time value of money relationship. There are state-owned entities whose current value will not be the same 15 years down the line. There are state entities that the Government envisaged to privatise 15 years, from which we have derived very good value. However, some state enterprises have become moribund due to technological advancements and changes in the global economy. The technologies they are applying will not derive value in today's world. Therefore, the Kenyan public will not derive the true value of an entity if the process is so protracted and runs for 15 years, as is happening under the existing privatisation law."
}