NAIROBI, Nov. 27 (Xinhua) -- The Kenyan government on Monday initiated the privatization process for 11 state-owned firms, aiming to boost revenue and enhance private sector involvement across multiple sectors.
Privatization and restructuring align with efforts toward fiscal consolidation and fostering economic growth, the National Treasury and Economic Planning said in a statement.
Among the entities slated for privatization are the National Oil Corporation of Kenya, which engages in oil field exploration, importation and sale of refined oil products, the Kenyatta International Convention Center which promotes conference tourism, and the Kenya Pipeline Company which holds a monopoly on gas and oil transportation.
The move is geared toward enhancing economic efficiency by fostering increased private sector involvement, thereby enabling the economy to be more responsive to market forces and competition, read the statement.
Other firms set for privatization include a book publisher, a seed producer, two rice millers, a textile manufacturer, a vehicle maker, a machinery producer and a milk processor. These 11 entities are part of the larger plan to privatize 35 state corporations in the long term.
The Kenyan government said that this initiative would alleviate the strain on government resources amid numerous pressing needs, contributing significantly to fiscal consolidation.
The East African country, grappling with financial constraints, is contending with escalating inflation and currency depreciation. In response, the World Bank recently announced a three-year 12 billion U.S. dollars funding program for Kenya, following a 682.3-million-dollar loan offered by the International Monetary Fund. ■
