Report On Consideration Of The Privatization Bill (national Assembly Bill No. 36 Of 2025)

THENATIONALASSEMBLY

THIRTEENTHPARLIAMENT-FOURTHSESSION-2025

DEPARTMENTALCOMMITTEEONFINANCEANDNATIONALPLANNING ANDTHESELECTCOMMITTEEONPUBLICDEBTANDPRIVATIZATION

REPORT ON:

THECONSIDERATIONOFTHEPRIVATIZATIONBILL,2025(NATIONAL ASSEMBLYBILLNO.36OF2025)

Published by:

TheDirectorateofDepartmentalCommitteesand Audit,Appropriationsand General-PurposeCommittees

Clerk'sChambers ParliamentBuildings

NAIROBI

AUGUST2025

TABLEOFCONTENTS

| ANNEXURES | ANNEXURES | ANNEXURES | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------| | CHAIRPERSONS'FOREWORD | CHAIRPERSONS'FOREWORD | | | CHAPTER ONE | CHAPTER ONE | 8 | | I. BACKGROUND | I. BACKGROUND | 8 | | 1.1 ESTABLISHMENTANDMANDATEOFTHEDEPARTMENTAL COMMITTEEONFINANCEANDNATIONALPLANNING. | 1.1 ESTABLISHMENTANDMANDATEOFTHEDEPARTMENTAL COMMITTEEONFINANCEANDNATIONALPLANNING. | | | 1.2 MEMBERSHIPOFTHECOMMITTEE | 1.2 MEMBERSHIPOFTHECOMMITTEE | | | 1.3 ESTABLISHMENTANDMANDATEOFTHESELECTCOMMITTEEON PUBLICDEBTANDPRIVATIZATION | 1.3 ESTABLISHMENTANDMANDATEOFTHESELECTCOMMITTEEON PUBLICDEBTANDPRIVATIZATION | .11 | | 1.3.1 | MEMBERSHIPOFTHECOMMITTEE | 12 | | 1.3.2 | COMMITTEESECRETARIAT | 13 | | CHAPTERTWO | CHAPTERTWO | 14 | | 2.0OVERVIEWOFTHEPRIVATIZATIONBILL,2025(NATIONALASSEMBLY | 2.0OVERVIEWOFTHEPRIVATIZATIONBILL,2025(NATIONALASSEMBLY | | | BILLSNO.36OF2025) | BILLSNO.36OF2025) | 14 | | 2.1BACKGROUND | 2.1BACKGROUND | 14 | | 2.2 2OVERVIEWOFTHEBILL | 2.2 2OVERVIEWOFTHEBILL | 15 | | CHAPTERTHREE | CHAPTERTHREE | 23 | | 3.PUBLICPARTICIPATIONANDSTAKEHOLDERENGAGEMENTONTHE BILL | 3.PUBLICPARTICIPATIONANDSTAKEHOLDERENGAGEMENTONTHE BILL | 23 | | 3.ILEGALFRAMEWORKONPUBLICPARTICIPATION | 3.ILEGALFRAMEWORKONPUBLICPARTICIPATION | 23 | | 3.2 | MEMORANDARECEIVEDONTHEBILL | 23 | | 3.3 | CLAUSEBYCLAUSESUBMISSION | 23 | | 3.4GENERALSUBMISSIONS | 3.4GENERALSUBMISSIONS | 49 | | 3.4.INAIROBICOUNTY | 3.4.INAIROBICOUNTY | 49 | | 3.4.2KISUMUCOUNTY | 3.4.2KISUMUCOUNTY | 52 | | 3.4.3ISIOLOCOUNTY | 3.4.3ISIOLOCOUNTY | 53 | | 3.4.4TANARIVERCOUNTY | 3.4.4TANARIVERCOUNTY | 54 | | 3.4.5KITUICOUNTY | 3.4.5KITUICOUNTY | 54 | | 3.4.6NAKURUCOUNTY | 3.4.6NAKURUCOUNTY | 55 | | 3.4.7VIHIGACOUNTY | 3.4.7VIHIGACOUNTY | 56 | | 3.4.8SIAYACOUNTY | 3.4.8SIAYACOUNTY | 56 | | JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2o25 (NationalAssemblyBil1No.36of2025) | JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2o25 (NationalAssemblyBil1No.36of2025) | |

| 3.4.9KAKAMEGACOUNTY 57 | |-------------------------------| | 3.4.I0MAKUENICOUNTY 58 | | 3.4.IIMERUCOUNTY .59 | | 3.4.I2KILIFICOUNTY 60 | | 3.4.13MOMBASACOUNTY .60 | | 3.4.I4UASINGISHUCOUNTY 61 | | 3.4.I5MACHAKOSCOUNTY 62 | | 3.4.I6BUNGOMACOUNTY 63 | | 3.4.I7NANDICOUNTY 64 | | 3.4.I8HOMABAYCOUNTY .65 | | 3.4.19LAIKIPIACOUNTY .66 | | 3.4.20KWALECOUNTY 67 | | 3.4.2ITRANSNZOIACOUNTY 67 | | 3.4.22KISIICOUNTY 69 | | 3.4.23ELGEYOMARAKWETCOUNTY 69 | | 3.4.24KAJIADOCOUNTY 70 | | 3.4.25EMBUCOUNTY 71 | | CHAPTERFOUR 72 | | 4COMMITTEESOBSERVATIONS 72 | | CHAPTERFIVE 77 |

JointReportoftheDeparimentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

LISTOFABBREVIATIONSANDACRONYMS

COK

Constitution of Kenya

CS

CabinetSecretary

ICPAK

Institute ofCertifiedPublicAccountants

KEPSA

KenyaPrivateSectorAlliance

LSK

LawSociety ofKenya

MP

MemberofParliament

ODM

OrangeDemocraticMovement

PwC

PricewaterhouseCoopersLimited

UDA

UnitedDemocraticAlliance

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2O25 (NationalAssemblyBillNo.36of2025)

ANNEXURES

Annexurel:AdoptionSchedule

Annexure2:AdoptionMinutes

Annexure3:ThePrivatizationBill,2025(NationalAssemblyBillNo.36of2025)

Annexure4:AdvertisementinvitingthepublictosubmitmemorandaontheBill

Annexure5:LetterfromtheClerkoftheNationalAssemblyinvitingrelevantstakeholdersto attendthepublicparticipationforum

Annexure6:ExplainersontheBill inEnglishandKiswahili

Annexure7:Memorandabystakeholders

CHAIRPERSONS'FOREWORD

ThisreportcontainstheproceedingsoftheDepartmental CommitteeonFinanceandNational PlanningandtieSelectCommitteeonPublicDebtandPrivatizationontheconsiderationofthe PrivatizationBill,2025(NationalAssemblyBillNo.36of2025).TheBillwaspublishedinthe KenyaGazetteSupplementNo.127of16July,2025andreadafirst timeon5thAugust,2025. TheBillwascommittedtotheDepartmental CommitteeonFinanceandNationalPlanningand theSelectCommitteeonPublicDebtandPrivatizationforconsiderationandtablingofthereport totheHousepursuanttoStandingOrder127.

TheprincipalobjectoftheBillistorepealandre-enacttheregulatoryframeworkfor the privatizationofpublicentitieswithaviewtoimprovingtheefficiencyandeffectivenessofthe processofprivatizingpublicentities.ltprovidesfortheestablishmentofthePrivatization Authority,setsoutthefunctionsoftheCabinetSecretaryinprivatizationmattersandlaysout theprocessofimplementationoftheprivatizationprogramme.TheBillalsoprovidesforthe proceduretobefollowedonreviewsandappealsininstanceswhenapersonisdissatisfiedby thePrivatizationAuthority'sdecision.

IncompliancewithArticle118(1)(b)oftheConstitutionandStandingOrder127(3),theClerk of theNational Assemblyplaced anadvertisement inthe printmediaon7hAugust2025,inviting thepublictosubmitmemorandabywayofwrittenstatementsontheBill.

Inaddition,theClerkoftheNationalAssemblyvideletterRef.No.NA/DDC/F&NP/2025/071 dated7August2025invitedkeystakeholderstosubmitviewsontheBillandattendapublic participationforumonThursday,14tAugust2025.Thememorandaweretobereceivedonor beforeThursday,14thAugust2025at5.00pm(EastAfricanTime).Bythecloseofthe submission deadline,theCommitteehadreceivedninememoranda.

Further,the Clerkof theNational Assemblyplacedan advertisementintheprintmediaon14th counties from 18th August,2025 to 2Ist August,2025.Thetwo Committees successfully conductedpublichearingsinthosecounties.

OnbehalfoftiheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationandpursuanttotheprovisionsofStandingOrder 199(6),itisoursingularhonourtopresenttothisHousetheJointReportofthetwoCommittees ontheirconsiderationofthePrivatizationBill,2025(NationalAssemblyBillNo.36of2025).The Committeesaregrateful to theOfficesoftheSpeakerandClerkoftheNationalAssemblyfor

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitfeeonFblicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemlyBillNo.36of2025)

Finally,wewishtoexpressourappreciationtotheHonourableMembersof thetwoCommittees andtheCommitteeSecretariatwhomadeinvaluablecontributionstowardsthepreparationand productionofthisreport.

Itisourpleasure toreportthattheComrnitteeshaveconsideredthePrivatizationBill,2025 (NationalAssemblyBill No.36of2025)andwish toreportto thisAugustHousewith the recommendationthattheHouse/approvestheBill withamendments.

Signed...

Hon.CPA.KuriaKimani,CBS,MP

Hon.AbdiShurie,CBS,MP Chairperson

Chairperson

DepartmentalCommitteeonFinanceandSelect National Planning

tCommitteeonPublicDebtand Privatizations o.c...02

Date...

Date...

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

I.BACKGROUND

• 1.ThisisthereportoftheDepartmentalCommitteeonFinanceandNationalDevelopment andSelectCommitteeonPublicDebtandPrivatizationontheirjointconsiderationofthe PrivatizationBill,2025(NationalAssemblyBillsNo.36of2025)

I.IESTABLISHMENTANDMANDATEOFTHEDEPARTMENTALCOMMITTEE ONFINANCEANDNATIONALPLANNING.

• 2.Article 124(l)of the Consticution provides that each HouseofParliamentmay establish Committeesandshall makeStandingOrdersfortheorderlyconductfitsproceedings, includingtheproceedingsofitscommittees.

3. TheDepartmentalCommitteeonFinanceandNational Planningisestablishedpursuantto

• (a)Toinvestigate,inquireinto,andreportonallmattersrelatigothemandate, ministriesanddepartments;
• (b)Tostudytheprogramme andpolicyobjectivesofministriesanddepartmentsand theeffectivenessof theimplementation;
• (c)onaquarterlybasis,monitorandreportontheimplementationofthenational budgetinrespectofitsmandate;
• (d)Tostudyandreviewalllegislationreferredtoit;
• (e)To study,assess and analyze the relative success of the ministries and departments asmeasuredby theresultsobtainedascomparedwith theirstated objectives;
• (f) TovetandreportonallappointmentswheretheConstitutionoranylawrequiresthe NationalAssemblytoapprove,exceptthoseunderStandingOrder204(Committeeon Appointments);
• (g)Toexamine treaties,agreements andconventions;
• (h)To make reports andrecommendationstothe House as oftenas possible, includingrecommendationofproposedlegislation;
• (i)ToconsiderreportsofCommissionsandIndependentOfficessubmitted tothe HousepursuanttotheprovisionsofArticle254oftheConstitution;and
• (i)ToexamineanyquestionsraisedbyMembersonamatterwithinitsmandate.

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

CHAPTERONE

1.2MEMBERSHIPOFTHECOMMITTEE

4. The National AssemblyDepartmental Committee on Finance and National Planning comprisesthefollowingMembers

Chairperson

Hon.CPA Kuria Kimani,CBS,MP MoloConstituency UDA Party

Vice-Chairperson

Hon.(Amb.)CPALangatBenjaminKipkirui,CBS,MP Ainamoi Constituency

UDA Party Members

Hon.PeterKaluma,CBS,MP HomaBay TownConstituency ODM Party

Hon.Sunkuyia,R.George,MP KajiadoWestConstituency UDA Party

Hon.CPAOyula,JosephH.Maero,MP

Hon.Betty N.Maina,MP Murang'a County UDA Party

ButulaConstituency ODM Party

Hon.Mboni,David Mwalika,MP Kitui Rural Constituency WDMParty

Hon.SheikhUmul Sheikh,MP Mandera County UDMParty

Hon.OkuomeAdipoAndrew,MP KarachuonyoConstituency ODM Party

Hon.(Dr.)ShadrackMwiti,MP South Imenti Constituency Jubilee Party

Hon.Chiforomodo,Munga,MP Lunga Lunga Constituency UDMParty

Hon.(Dr.)ArikojohnNamoit,MP TurkanaSouthConstituency ODMParty

Hon.CPA RuttoJuliusKipletting,MP Kesses Constituency UDA Party

Hon.MacheleM.Soud,MP Mvita Constituency ODM Party

Hon.Paul Biego,MP

Chesumei Constituency UDA Party

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

1.2.ICOMMITTEESECRETARIAT

5. TheFinance andNational PlanningCommitteeisfacilitatedby thefollowingstaff

Mr.Benjamin Magut Principal ClerkAssistantIl /HeadofSecretariat

| Ms.jeniferNdeto | Mr Benson Kamande | |------------------------------|------------------------| | DepttyDirectorLegal Services | ClerkAssistantIl | | Mr.Salem Lorot | Ms.WinfredKambua | | SeniorLegal Counsel | ClerkAssistantIII | | Mr.George Ndenjeshe | Mr.JamesMacharia | | Fiscal AnalystIl | MediaRelatictis Office | | Mr.Benson Muthuri | Mr.Mwangi Muchiri | | AssistantSerjeant-At-Arms | AudioOfficerI | | Mr.SteveJeremyKamau | Mr.Allan Ngugi | | CommitteeIntern | Committee Intern |

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandleSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationill,2025 (NationalAssemblyBillNo.36of2025)

I.3ESTABLISHMENT AND MANDATE OF THE SELECT COMMITTEE ON PUBLICDEBTANDPRIVATIZATION

6. ThepowersofeachHouseofParliamenttoestablishcommitteesandtomakeStanding OrdersfortheorderlyconductofitsproceedingsareprovidedforunderArticle124ofthe ConstitutionofKenya,2010. 7. Toensureeffectiveoversightonmattersconcerningpublicdebt,debtguarantees,publicprivatepartnerships,andtheprivatizationofnationalassets,theNational AssemblyStanding Order207AestablishesthePublicDebtandPrivatizationCommittee,whichistaskedwith specificmandatessuchas:

• i. Oversightofpublicdebtandguarantees,pursuanttoArticle214oftheConstitution
• ii. ExaminemattersrelatingtodebtguaranteesbytheNationalgovernment;
• iii. OversightConsolidatedFundServicesexcludingauditedaccounts;
• iv. Examinereportsonthestatusoftheeconomyinrespectofthepublicdebt;
• V. respectofthepublicdebt;and
• vi. Oversightprivatizationofnationalassets

9. 8.ThisCommitteeis thereforemandated,amongotherfunctions,toexamine theprivatization ofpublicentitiesandproposerecommendationstotheHouseforadoption.

I.3.IMEMBERSHIPOFTHECOMMITTEE

9. The Public Debt and Privatization Committeeas currently constituted,comprises the followingMembersofParliament:-

CHAIRPERSON

Hon.Abdi Shurie,CBS,M.P. BalambalaConstituency JubileeParty

VICE-CHAIRPERSON

Hon.Njoki Irene Mrembo,M.P

Bahati Constituency

JubileeParty

Hon.OmbokoMilemba M.P Emuhaya Constituency ANCParty

Hon.(CPA) Suleka,H.Harun.M.P NominatedMP UDM Party

Hon.(Dr.) Irene Kasalu M.P

Hon.KipkorosJosephMakilapM.P BaringoNorthConstituency

Kitui County

Wiper Party

UDA Party

Hon.Kwenya,ThukuZachary,M.P KinangopConstituency Jubilee Party

Hon.Chege Njuguna M.P Kandara Constituency

UDA Party

Hon.Muiruri Muthama Stanley,M.P

Hon.Abdi AliAbdi,M.P

LamuWestConstituency Jubilee Party

ljaraConstituency

NAP-K

Hon.AdenDaud,EBS,M.P WajirEastConstituency Jubilee Party

Hon.Kirwa AbrahamKipsang,M.P Mosop Constituency

UDA Party

Hon.(Dr.)Daniel Manduku,M.P

Hon.Letipila DominicEli,M.P

Nyaribari Masaba Constituency ODMParty

Samburu North Constituency UDA Party

Hon.BarongoNolfasonObadiah,M.P

BomachogeBorabuConstituency ODM Party

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivfizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

1.3.2COMMITTEESECRETARIAT

10.TheCommitteeissupportedbythefollowingSecretariat:

Mr.Leonard Machira Principal ClerkAssistantll &Head ofSecretariat

Mr.Chacha Machage

Mr.JobMugalavai

SeniorFiscalAnalyst/ClerkAssistant

Fiscal AnalystIl/ClerkAssistant

Mr.Julie Mwithiga

Mr.TimothyChiko

SeniorFiscal Analyst

Research OfficerIll

Ms.Audrey Ogutu

Mis.MwanaashaJuma

Legal Counsel Il

AssistantSerjeant-at-Arms

Ms.Edith Chepngeno

Mr.DantonNirvana

Media Relations OfficerIll

Audio OfficerIll

Mr.George Mbaluka Office Assistant

CHAPTERTWO

2.0OVERVIEWOFTHEPRIVATIZATIONBILL,2025(NATIONALASSEMBLY

BILLSNO.36OF2025)

2.IBACKGROUND

• I1.KenyahasawiderangeofState-OwnedEnterprises(SOEs)operatingacrosskeysectorsof theeconomy.Theseentitieswerecreatedbythegovernmenttodeliveressentialservices, driveeconomicgrowth,andsupportnationaldevelopmentobjectives,whilealsohelpingto stabilizemarketsforcriticalpublicgoods.

12. Recognizingtheimpotnceofimprovingtheireffectiveness,theGovernmentofKenyahas takenstepstostrengthentheefficiencyandperformanceofSOEs.Reformshavefocusedon governmenthaspursuedublic-private partnerships(PPPs)and divestitureinitiatives to encouragegreaterprivatesectorinvolvementinselectSOEs.

• 13.PrivatizationinKenyahasbeenasignificantaspectofthecountry'seconomicreformsand development strategy.Since the I990s,Kenya has implemented various privatization initiativesaimedattransferringcontrolofStateOwnedEnterprises(SOEs)totheprivate sector.ThemainobjectivesofprivatizationinKenyahavebeentoenhanceefficiency,attract investments,stimulateeconomicgrowth,andreducethegovernment'sfinancialburden
• 14.ThePrivatizationBill,2025(NationalAssemblyBillsNo.36of2025)isaNationalAssembly BillsponsoredbytheLeaderofMajorityPartyoftheNationalAssembly.Itwaspublished on16July2025anditwasreadforafirsttimeon5August,2025.Itwasthencommitted toboth theDepartmentalCommittee onFinance andNationalPlanning and Select CommitteeonPublicDebtandPrivatisationfortheirjointconsideration.
• 15.InNairobiConstitutionalPetitionNo.E49lof2023OrangeDemocraticMovement PartyVs.TheCabinetSecretary,National TreasuryandEconomicPlanning&2 Oters(AsConsolidatedwithPetitionE010of2024andE025of2025),theHighCourt on24September2024declaredthePrivatisationAct,2023tobeunconstitutional,nulland void.TheHighCourtmadethefollowingDeclarationsandOrders:
• i. ThattheNational Assemblydidnotconductreasonable,meaningful,adequateandor effective publicparticipationbefore passing thePrivatisation Act,2023.The entire PrivatisationAct,2023wasthereforeunconstitutional,nullandvoid.
• ii ThatSection22(5)ofthePrivatisationAct,2023wasinconsistentwiththeConstitutionand wasunconstitutional,nullandvoid.
• n. That the decisiontoprivatiseKenyatta InternationalConference Centre,(Kenya InternationalConventionCentre)anationalmonument,contravenesArticleIl(2)ofthe

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningaiidtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

ConstitutionasreadwiththeprovisionsoftheMonumentsandHeritageActandwas, therefore,unconstitutional,unlowfulnullandvoid.

• 16.ThethenPrivatisationBill,2023(NationalAssemblyBillsNo.22of2023),sponsoredbythe LeaderofMajorityParty,soughttorepeal the Privatization Act,2005(Cap.485B)and FirstReadingintheNationalAssemblywason6thJune,2023andwasthenCommittedto theDepartmental CommitteeonFinanceandNational Planningforitsconsideration and wholeandThirdReadingwasconductedon14thSeptember,2023andwaspassedbythe Housewithamendments.
• 17.On 9th October,2023,the Presidentassented to the Privatisation Bill,2023 as the PrivatisationAct,2023(No.11of2023).
• 18.ThePrivatizationBill,2025,aspublished,andlargelysimilartothenowrepealedPrivatisation Act,2023,hassoughttoaddresstheunconstitutionalityofsection22(5)ofthePrivatisation Act,2023bydeletingtheprovision.Section22(5)oftherepealedActprovidedthatwhere theNationalAssemblydoesnotmakeadecisioneithertoratifyorrefusetoratifywithin 90days,theprivatisationprogramme shallbe deemedtohavebeenratified.Section22(5) oftheActprovidedasfollows:
• (5)WheretheNationalAssemblydoesnotmakeadecisionundersubsection(3)withinninety days,theprivatisationprogrammeshallbedeemedtohavebeenratified.
• 19.Paragraph138oftheJudgementexpoundedontheunconstitutionalityofsection22(5)in thefollowingwords-

"138.TheConstitutionasthesupremelawoftheland,assignedtothe4threspondenttherole ofoversightoverStateorgans,includingtheexecutive.Thepurposeofseekingratificationunder theAct,istogive the4threspondentasthepeople'srepresentative,anopportunitytocheck whethertheproposedprivatisationisinthepublicinterestAlthoughtheintendmentofsection 22(3)istoensurethatthe4threspondentmakesapromptdecisionontherequesttoratify the privatisationprogrammewithoutdelay,theeffectofsection22(5)todeemratificationtohave beengivenonexpiryofninetydays,istosidesteproleof theNationalAssemblytocheckwhether theprivatisationprogrammeisreallyinthebestinterestofthepeople."

2.2OVERVIEWOFTHEBILL

• privatizationofpublicentitieswithaviewtoimprovingtheefficiencyofpublicentities.

• 21.PartI(Clauses1-6)oftheBillprovidesforpreliminarymattersincludingtheshorttitleand interpretationoftermsusedintheBill.ltfurthersetsoutthetransactionstowhichtheAct
• 22.Clause3of theBillprovidesfortheobjectsandpurposeoftheActastoprovideforthe establishmentofthe PrivatisationAuthority;andtostreamline theregulatory and institutionalframeworkfortheimplementationofaprivatisation.
• 23.Clause4of theBillprovidesfor thelimitationsoftheAct.ItprovidesthattheActshall not applyto-
• i.saleofsharesin thesecondarymarket
• ii.sale ofshares bya social security fund,compensation fund,superannuation fund insurancefundorendowmentfundunderpubliccontrolforthebenefitofits contributors
• iii.saleofgovernmentsharesinagovernment-linkedcorporation
• iv.saleofnewsharestoexistigshareholdersthrougharightsissue
• sharesheldbyapubliccntity
• vi.saleor transferof sharesbya countygovernment.
• 24.Further,the clauseprovidesthat the National Treasurymay,on its own or rough the Authority,providetechnical supportandassistancetocountygovernmentswithregardto privatisationbycountygovernments.
• 25.Clause6oftheBillprovidesforthepurposeofaprivatisationasto-
• i.implementgovernmentfiscalpoliciesandrevenueraisingmeasures
• iil. ofprivatecapitalandexprtise
• ili.enhance anddevelop thecapitalmarketsinKenya
• iv.improveefficiency.profitabilityandaccountabilityofpublicentities
• V.i improvetheregulationoftheeconomybyreducingconflictsbetweenthepublic sector'sregulatoryfunctionsandcommercialfunctions
• vi.broaden thebaseofownershipintheKenyaneconomybyencouragingprivate ownershipofentities.
• 26.Partll(Clauses7-17)oftheBillprovidesforthecoordinationandoversightofprivatisation matters.ltoutlinesthefunctionsof the CabinetSecretary;providesforthe establishment, functions andadministrationofthe PrivatisationAuthorityandthe appointmentand
• 27.Clause7of theBillprovidesforthefunctionsoftheCabinetSecretarysuchas+58

JointReportoftheDepartmentalCojnnitteeonFinanceandNationalPlanningandtlieSelect CommitteeonPublicDebtandPrivatizetionontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• i.providingpolicydirectiononmattersrelatedtoprivatisation
• ii.co-ordinatingtheadherencetonational,regionalandinternationalobligations relatingtoprivatisation
• ili.developingandformulatingtheprivatisationprogramme
• iv.overseeingtheadministrationoftheAct
• 28.Clause8oftheBillprovidesfortheestablishmentofthePrivatisationAuthorityasa corporate entity.
• 29.Clause9oftheBillprovidesforthefunctionsofthePrivatisationAuthorityasfollows-
• i.to advisethegovernmenton allaspectsofprivatisationofpublicentities
• ii.tofacilitatetheimplementationofgovernmentpoliciesonprivatisation
• ili.toimplementtheprivatisationprogramme
• iv.toimplementspecificprivatisationproposalsinaccordancewiththeprivatisation programme
• v.to collaborate with other organisations,within or outside Kenya,as it may considerappropriateinfurtheranceoftheobjectsoftheAct
• vi.totakesuchmeasuresasarenecessarytoensurethattheprovisionsofthisAct arecompliedwith
• conferred,fromtimetotime,ontheAuthority
• 30.Clause10oftheBillprovidesfortheBoardofthePrivatizationAuthority,consistingof9 persons.These are:
• iachairpersonappointedbythePresident
• representativedesignatedinwriting
• ili.theAttorney-Generalorarepresentativedesignatedinwriting
• iv.sixotherpersons,notbeingpublicofficers,appointedby theCabinetSecretary through a competitive process,each possessiniga degree in either economics, accounting,financeoranyotherrelevantdegreefromarecognizedinstitutionand level inarelevantfield.
• 31.Partlll(Clauses I9-30)ofthe Billdeals with the privatization programme.Itmakes provisionsfortheformulationoftheprogrammewhichincludesidentificationofentitiesto beincludedin theprogrammeinlinewith theconsiderations,publicconsultations during developmentandapproval bytheNationalAssemblybeforeimplementation of the programme.

FointReportoftheDepartmentalCommitieeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• 32.Itfurtherspecifiesthevalidityperiodoftheprogrammeasnotexceedingfiveyearsfrom thedateofgazettement;andsuchvaliditymaybeextendedforaperiodnotexceeding twelvemonths.
• 33.Clause19of theBillprovides thattheprivatizationprogrammeshallbeformulatedbythe CabinetSecretaryinaccordancewith theActandapprovedbytheCabinet;specify the publicentities identifiedandapprovedforprivatization;andserve asthebasisuponwhich a privatizationshallbeunderaken.Theformulationoftheprivatizationprogrammeshallbe inaccordancewithsection12ofthePublicFinanceManagementAct,Cap.412A.
• 34.Clause2loftheBillprovides thattheCabinetSecretaryshall,in the identificationand determinationofentitiesforprivatization,takeintoconsideration:
• i.therelevantgovernmentpoliciesinrespectofprivatization
• iilthestrategicpriorities andpolicygoalstobeachievedbytheprivatization
• ili.thestrategicnatureofthepublicentitytobeprivatized
• iv.theneedto avoidaprivatization thatmayresultin anunregulatedmonopoly
• protectionoraccesstocreditonconcessionarytermsasaresultoftheNational Government'ssovcreignstatus
• vi.theextentofregulatoryadjustmentsrequired
• vi.theneedtoreducebudgetdrainongovernmentresources
• vili.theexpectedbenefitstobegainedfromaproposedprivatization
• ix.anyotherrelevantconsideration
• 35.Clause22ofthe BillprovidesthattheCabinetSecretaryshallsubmittheprivatization
• iabriefdescriptionof thepublicentitytoundergoprivatization
• i.abriefexplanationoftiereasonsforundertakingtheprivatization
• iii.thebenefitstobegainedfromtheproposedprivatizationincludingtheestimated revenuetobeobtained
• iv.anyotherrelevantinformation.
• 36.Clause23of theBillprovides thattheNational Assemblyshallconsideraprivatization programmewithinsixtydaysofreceipt.
• 37.Clause24oftheBillprovidesthattheNationalAssemblyshallbeguidedbyprinciplesof publicfinanceunderArticle20loftheConstitution,principlesofgoodgovernance,the consideration.

JointReportoftheDepartmentalCommitteeonFinanceidNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsidcrninofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• 38.Clause25oftheBillprovidesthattheNationalAssemblyshallapprovetheprogrammefor implementation; approve the programme with amendments; or decline the programme.
• 39.Clause26of theBillprovidesthattheClerkisrequiredtonotifytheCabinetSecretaryof the decisionof theNational Assemblywithinseven daysof the decision.Further,where the National Assemblyapprovesaprivatizationprogrammewith amendments,thenoticeshall state the proposed amendments and thereasons.Also,where the National Assembly declinesaprivatizationprogramme,theClerkshall state thereasoninthenotification.
• 40.Clause27of theBillprovidesthattheCabinetSecretaryshall,uponreceiptofthenoticeof approvaloftheprogramme with amendments,amend the privatizationprogramme and publishitintheKenyaGazette.
• 41.Clause28of theBill providesthattheapprovedprivatizationprogrammeshall bepublished intheKenyaGazette.
• 42.Clause29oftheBillprovidesthataprivatizationprogrammeshallbevalidforaperiodnot exceedingeightyearsfromthedateofgazettement.lf,onexpiryoftheprogramme,the implementationoftheprogrammehasnotbeencompleted,theCabinetSecretarymay include the affected entities in anotherprivatizationprogramme formulated and approved in accordancewiththeAct.
• 43.Clause30ofthe Billprovides thattheCabinetSecretarymayamendtheprivatization programme.Insuchacase,theprovisionsof thePartrelatingtoformulationandapprovals
• 44.PartIV(Clauses31-43)oftheBillmakesprovisionfortheimplementationoftheprogramme. ItmandatesthePrivatizationAuthoritytoimplementtheprogrammeandprovidesforthe establishmentofasteeringcommitteetoimplementtheprivatizationonbehalfofthe Authority.
• 45.ltfurther providesfor whois eligibletoparticipate inaprivatization;themethods of privatization;thedevelopmentofaprivatizationproposalwhichshall includestakeholder theBoardoftheAuthorityandtheCabinetSecretarybeforeimplementation.
• 46.Additionally,thePartprovidesforrestrictions,andobligationsonentitiesscheduledfor privatization.
• 47.Clause3loftheBillprovidesthattheprivatizationprogrammeshallbeimplementedbythe AuthorityinaccordancewiththeAct.
• 48.Clause32oftheBillprovidesthatanyperson,whetherKenyanornon-Kenyan,iseligibleto participateinaprivatization.Further,itprovidesthattheCabinetSecretarymaydirectthe

AuthoritytolimitparticipationinanyprivatizationtoKenyans;orensurethatthereisa specifiedminimumlevelofparticipationbyKenyansinanyprivatization.Theclausealso privatization but this shall not prevent a social security fund,compensation fund, superannuationfund,insurancefundorendowmentfundundergovernmentcontrolfrom purchasingsharesforthebenefitof itscontributors.

• 49.Clause 33of theBill provides thatin the implementationofaprivatisation,there shallbea steeringcommitteecomprisingthefollowingmembers-
• i.t thePrincipalSecretaryfor the time being responsible for privatizationora representativedesignaredinwriting;
• il. theAttorney-Generalorarepresentativedesignated inwriting;
• beingprivatised
• iv.twomembersoftheBoardasprovidedinsectionI0(4)(althoughthisprovisionisnot thereintheBill)
• 50.Clause34oftheBillprovidesformethodsofprivatizationwhichshallinclude:
• initialpublicofferofshares
• il.saleofsharesbypublicnder
• ili.saleresultingfromtheexerciseofpre-emptiverights
• iv.suchothermethodastlieBoardshall,with theapprovalof the CabinetSecretary, determine
• 51.Clause35oftheBillprovidesforthecontentstobeincludedintheprivatizationproposal. ItprovidesthatwhereanentityhasbeenidentifiedforprivatizationundertheAct,the shall specify-—
• i.thepurposefortheestablishmentorexistenceoftheentitytobeprivatizedandthe extenttowhichthatpurposeoroperationhasbeenmetincludinganyinadequacies inmeetingthatpurpose
• I. anyrightsorotherentitlementsandresourcesthathavebeenprovidedtomeetthe purposefortheestablishmentorexistenceoftheentitytobeprivatized
• ili.anyrecommendationsforcontinuingtomeetthepurposeforestablishmentor existenceoftheentitytobeprivatized
• iv.thefinancialpositionoftheentitytobeprivatized
• v.therecommendedmethodofprivatization
• vi.theestimatedcostsofimplementingtheproposedprivatization

JointReportoftheDepartmentalCo!vitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizsionontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• vii.anyrecommendationsfordealingwiththeemployeesdirectlyaffectedbythe
• vili.whereapplicable,arecommendationonhowtoundertakesocio-economic investmentstothehostcommunity
• ix.thebenefitstobegainedfromtheproposedprivatization
• x.aworkplanfor theproposedprivatization
• xi.anyinformationrelatingtotherepeal,amendmentorenactmentof anylawforthe proposedprivatizationtobecarriedout
• xii.anevaluationoftheentitytobeprivatized xili.anyproposalsonhowKenyanscanparticipateinthetransaction
• xiv.anyotherrelevantinformation.
• 52.Clause37of theBill providesthatuponapprovalofaprivatizationproposal undersection 36,thedeterminedandapprovedmethodofprivatisation shallbeeffectedinthemanner specifiedintheSecondScheduletotheAct.
• 53.Clause38of theBill providesthatthePrivatizationAuthorityshallundertakeavaluationfor
• 54.Clause 40oftheBillprovidesforgeneralrestrictions.ltprovidesthatapublicentityto whichthesectionappliesshallnot
• i.allowtheassetsof thepublicentitytobedissipated
• ii. incuranyliabilities,otherthanintheordinarycourseofbusiness,withouttheprior writtenapprovaloftheCabinetSecretary
• ili.discloseinformation,other thanpublicly,ifthereisareasonableriskthatthe disclosurewouldgive an advantage toaperson whomight competein the privatisation
• 55.Clause4lof theBillprovidesthatapublicentityundergoingprivatizationshallnotundertake
• 56.Clause42of theBillprovidesthattheNational Governmentorthepublicentityundergoing privatizationshallnotextendcreditorprovidefinancingforthepurchaseoftheshares.
• 57.Clause43of theBill providesthatapublicentityundergoingprivatizationshall
• i. keepup-to-datebusinessrecordsandbooksofaccounts
• ii.maintain an up-to-dateregisterof all fixed assets
• ii.documentalllegalandotherobligationsoftheentity

• 58.PartV(Clauses44-47)oftheBillprovidesforprivatizationagreementspecifyingwhoand whenanagreementcanbeexecuted.Itfurtherprovidesforpublicationoffinalised privatization.
• 59.PartV1(Clauses48-49)of the Billprovides for themanner inwhich theproceedsof privatizationshallbehandled.
• 60.PartVll(Clauses 50-58)ofthe Billprovidesfor reviewsandappeals.Itprovidesthe Board.
• 61.artVlll(Clauses59-62)oftheBillprovidesfor thefinancialprovisionsinrespectofthe Authorityincludingthesourcesoffunds,thefinancialyearof theAuthority,annualestimates accountsandauditofthefinancial affairsoftheAuthority.
• 62.PartIX(Clauses63-69)oftheBillprovidesthemiscellaneousprovisions.Itprovidesforthe ofinformationto theAuthority;offencesunderActand thepowerof theCabinetSecretary tomakeRegulations.
• providesfortheeffectofitsenactmentonexistinglegislationandfortherepealofthe PrivatizationAct,2005.
• 64.TheFirstScheduletotheBillprovidesfortheconductofbusinessandaffairsoftheBoard.
• 65.TheSecondScheduletotheBill setsoutprovisionsonthemethodsofprivatization.
• 66.TheThirdScheduletotheBillsetsouttheAdministrativeProceduresforthe administration ofreviewsandappealsundertheAct.

JointKcportoftheDepartmentalCommitteeonFinanccu1NionalPlanningandtheSelect ComniiceonPublicDebtandPrivatizationontheConsirlefiuofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

CHAPTERTHREE

3.PUBLICPARTICIPATIONANDSTAKEHOLDERENGAGEMENTONTHEBILL

3.ILEGALFRAMEWORKONPUBLICPARTICIPATION

• 67.ArticleIl8(l)(b)oftheConstitutionprovidesthat:

"Parliamentshallfacilitatepublicparticipationandinvolvementin thelegislative andother businessofParliamentanditsCommittees."

• 68.TheNational AssemblyStandingOrder 127(3) and(3A) stipulates that:
• "(3)TheDepartmental Committeeto whichaBill iscommittedshall facilitatepublic
• (a)invitingsubmissionofmemoranda;
• (b)holdingpublichearings;
• (c)consultingrelevant stakeholders ina sector;and
• (d)consultingexpertsontechnicalsubjects.
• (3A)TheDepartmentalCommitteeshalltakeintoaccounttheviewsandrecommendationsof the publicunder paragraph(3) in its report to the House."

3.2MEMORANDARECEIVEDONTHEBILL

• 69.Pursuant to theaforementionedprovisions,theClerkof theNational Assemblyplacedan advertisementintheprintmediaon7August2025invitingthepublictosubmitmemoranda onthe Bill.Further,the Clerkof the NationalAssemblyvide letterRef.No. NA/DDC/F&NP/2025/071dated7August2025invitedkeystakeholderstosubmitviews ontheBillandattendapublicparticipationforumon13August2025and14hAugust2025. Further,ExplainersontheBillwereavailedtothepublicinEnglishandKiswahilitofacilitate betterunderstandingontheBillandareannexedtothisreportasAnnexure6.
• 70.TheCommitteesreceivedmemorandafromstakeholderswhosememorandaareannexed to thisreport asAnnexure 7.They stated as follows:

3.3CLAUSEBYCLAUSESUBMISSION

Clause2

PricewaterhouseCoopers(PwC)

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2O25 (NationalAssemblyBillNo.36of2025)

• 71.PwCproposed the amendment of the definition of'publicentity'to includea county government linkedcorporation.The currentBill doesn't include sub-sovereign entities such ascountygovernmententitiesinthedefinitionof apublicentity.

CommitteesObservation

TheCommitteesnotedthattheBillonlydealswithprivatizationofnational government assets and doesnot extend tocountygovernments.Therefore,the Coramitteesdidnotagreetotheproposedamendment.

• 72.Thestakeholderproposedtheamendmentofthedefinitionof'SecondaryMarket'toprovide thatthemarketswheretradablesecuritiesshallbetradedarebothlocalandinternational financial markets.Thestakeholderprovidedthatthiswillprovidefortransactionsthatmight beconductedoutsideKenya.

CommitteesObservation

TheCommitteeswereofadifferentviewthatthedefinitionwassufficient.

leticuteofCertifiedPublicAccountantsofKenya(ICPAK)

• 73.Thestakeholderproposedtheintroductionof the term'divestiture'tomeanDisposingof wholeorpartoftheassetsandorsharesofapublicenterprise.Thestakeholdernoted thatthiswouldensureeaseofinterpretationandflexibilityingovernmentinterests.

CommitteesObservation

TheCommitteesagreedtotheproposedamendment.

Clause3

InstituteofCertifiedPublicAccountantsfKenya(ICPAK)

ICPAkproposedtheamendmentoftheobjectsandpurposeoftheBilltoprovide paragraphs:

c)prohibitrestrictive orunfairtradepracticesin theprivatizationprocess.

CommitteesObservations

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• i.The Committees agreed to the proposed newparagraph(c)providing for an additional objectoftheActtoprohibitrestrictive orunfairtradepracticesin the privatization process;and
• ii. The Committees agreed to the proposed new paragraph (d) and recommendedthattheparagraphbefurtheramendedtorefer toArticleIo of the Constitution thatprovides fornational values andprinciples ofpublic governance.

Clause4

PricewaterhouseCoopers(PwC)

• 74.PwCproposedamendingClause4(c)toharmonize itwith thedefinitionofa'Governmentlinkedcorporation','publicentity,and'privatization'.Thestakeholdersubmittedthatthiswould eliminateambiguityregardingtheapplicabilityoftheActtosharetransactionsinvolving government-linkedcorporations.AccordingtoPwC,theBill intendstoexcludeonly sales privatepartiesremainregulatedundertheBill.

CommitteesObservation

TheCommitteesnoted thattheBill defined apublicentitytoincludeanational government-linked corporationyetclause 4oftheBill soughttoexclude saleof governmentsharesinagovernment-linkedcorporationfrom theambitofthe Bill/Act.TheCommitteesthereforerecommendedthatclause4(c)oftheBill be deletedtobringnationalgovernment-linkedcorporationswithinthepurviewof theBill/Act.

Clause 5(f)

• 75.The Instituteproposed amendingClause5(f) to enhance clarity in theimplementation of the principlesofprivatization.ICPAKproposed thatthe clausebeamendedtoreadasfollows:

"f)effective,efficient,economicalandtransparent;

CommitteesObservation

Bill and in particular,under paragraphs(d),(e) and(1).

Clause6

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

PricewaterhouseCoopers(PwC)

• 76.Amend theClausetoprovideanewparagraph(g)toreadasfollows.

"(g)ensure thatprivatizationinitiativescontributetoeconomicinclusivityandpoverty reduction"

• 77.The stakeholdersubmitted thatprivatizationprocesses have significant socio-economic impacts,whichensureinclusivity,helptoaddressdisparities,anenhancetheparticipation ofmarginalizedgroupsintheeconomy.Additionally,thiswouldcreateopportunitiesfor employment,ownership,accesstoservices,andareductionopovertylevels.

CommitteesObservation

TheCommitteeswereofadifferentviewthatthe stakeholder'sproposalis alreadyprovidedforintheBill.

Clause 6(d)

Istitute of Certified PublicAccountantsof Kenya(iCPAK)

• 78.ThestakeholderproposedtheamendmentofCiause6(d) toreadasfollows:

d)Improveefficiency,sustainabilityandaccountobilityofpublicentities

• 79.TheInstitute submittedthat the term'profitability'asappliedintheBill conflictswith the government'scoremandateofservicedelivery,andthusthesubmissiontoaligntheBillwith thegovernment'smandate.

CommitteesObservation

heCommitteeswereofadifferentviewthatonceanentityhadbeen privatised,thepost-privatizationoutcomewouldnotbewithintheambitofthe government.ItwasthereforetheintentionoftheBill tostate thatoneofthe

Ciatise7

Institute ofCertified PublicAccountantsofKenya(ICPAK)

• 80.ICPAKproposed the deletionofClause7initsentirety,arguingthatitcreatesanoverlap between therolesof theCabinetSecretaryandthoseof theAuthority'sBoard.According

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

to the stakeholder,theproposed amendmentwillenhance clarity and efficiency ofthe Board'sresponsibilityanddelinktheGovernmentfromtheprocess.

Committees Observation

TheCommitteeswereofadifferentviewthattherewasnooverlapbetweenthe rolesoftheCabinetSecretaryand theBoardofthePrivatizationAuthority.This wastobelookedatfromthelensoftherolesoftheresponsibilitiesofthe National Treasury as provided for under section I2 of the Public Finance ManagementAct,Cap.412A.

Clause9

PricewaterhouseCoopers(PwC)

• 81.PwCproposed theinclusion ofnewClauses toprovide for theindependenceofthe Authorityasfollows:-
• "9A.Independenceof theAuthority
• (1)TheAuthorityshall beindependentandfreeofcontrol bygovernment,political,or commercialinterestsintheexerciseofitspowersandtheperformanceofitsfunctions.
• (2)Infulfillingitsmandate,theAuthorityshallbeguidedbythenationalvaluesand principlesofgovernanceinArticleI0andthevaluesandprinciplesofpublicservicein Article232(1)oftheConstitution."
• 82.Thestakeholdersubmittedthattheomissionofindependencecreatestheriskthatthe Authority could be subject to political interference or biased decision-making,which underminestheintegrityandeffectivenessoftheprivatizationprocess.

CommitteesObservations

• i.The Committees observed that the proposed subclause (l) of clause 9A soughttoprovidefor the independenceofthePrivatizationAuthority.The proposal misses theimportantroleofgovernment,particularlytheCabinet Secretary for the National Treasury,in privatization matters within the provisions of section 12 of the Public Finance Management Act, Cap.412A. Therefore,theCommitteeswerenotpersuaded bytheproposal.
• ii.The Committees,however,agreed to the proposal under subclause (2).

InstituteofCertifiedPublicAccountantsofKenya(ICPAK)

• 83.AmendtheClause toprovideforadditionalrolesof theAuthority.ICPAKnotedthat importantrolessuchasrecordmanagement,liaison,publicity,ormonitoringandevaluation hadbeenleftout.Theyproposedadditional rolesaslistedbelow:
• a)seekpotential investorsinpublicenterprises.
• b)topreparethelong-termdivestituresequenceplan
• maintainrecords,safegudinformation,andestablish such administrativeprocedures as shallensureconfidentialiyofinformation.
• d maintaincloseliaisonwithallrelevantinstitutionsintheprocessofprivatization.
• e)publicizeactivitiesoftheprivatizationprogramme.
• f)monitorandevaluate theimplementationofprivatizationprogrammes inKenya.

CommitteesObservation

TheConimitteesdidnot agree totheproposal bythestakeholder as thefunctions oftheAuthorityareadequatelyprovidedforincheBill.

Clause1o(1)(d)

InstituteofCertifiedPublicAccountantsofKenya(iCPAK)

• 84.Thestakeholderproposed theamendmentof thequalificationsofBoardmemberstoinclude thatthecandidatesshouldmeettherequirementsofChaptersixoftheConstitutionanda practicesobservedinsimilarBoards.

CommitteesObservation

TheCommitteesagreedtothestakeholder'sproposal.

NewProposal(Clause10)

Instituteof CertifiedPublicAccountantsofKenya(ICPAK)

• 85.ThestakeholderproposedtheintroductionofanewClauseI0(4)toprescribethepowers tocoopttheBoard.ICPAKproposedthatthenewClausereadasfollows:

TheBoardmay,byresolutioneithergenerallyorinaprticularcase,co-optanadditionalmember

JointReportoftheDepartmentalCommitteeonFinanceidNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsicerationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

CommitteesObservation

TheCommitteesagreed to theproposedamendment.

Clause14

PricewaterhouseCoopers(PwC)

• 86.PwCproposed theinclusionofnewsubclausestoprovide theformalrequirementsfor delegation terms, revocation,and accountability to mitigate the risks of misuse and governancegaps.The stakeholderproposednewsub-clauses asfollows:-
• (2)Every such subcommittee,officer,employee,or agent shall beappointedby the Authorityinwriting,settingoutthedurationoftheappointment,theduties,reporting requirements,functions,authority,andpowerssoconferred.
• (3)TheAuthoritymayatanytimerevokeadelegationunderthissection.
• (4)Adelegation conferredunder thissection shallnotpreventthe Authorityfrom performingthedelegatedfunction."

CommitteesObservation

The Committees didnot agree to the proposal on thegrounds the clause in the Bill was adequateand thatadditional provisionswouldbe tooprescriptive.

Clause17(3)

Kenya Private Sector Alliance (KEPSA)

• 87.Thestakeholdernotedthatthereisneedtohavespecificnumberofyearsthecorporate secretarycanservetheAuthority.Thiswilldeterabuseoftheloopholethatexistinthe currentClause17ofPrivatizationBill2025.Thenewclauseshouldreadasfollows;
• 17(4).Thecorporationsecretaryshallbeappointedforatermoffouryearsandmay

CommitteesObservation

TheCommitteeswereofadifferentviewthat thetenureofthecorporation secretarycouldnotbesetoutin theBill sincehe/shewasnotamemberof theBoard and thattheinstrumentsofappointmentwouldprovidefor the terms and conditions ofservice.

Clause19(2)(a)

Institute ofCertified PublicAccountantsofKenya (ICPAK)

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• 88.ICPAKproposedamendingtheClausetogivetheroleofformulationofthePrivatization programmetotheAuthorityandnottheCabinetSecretary,asindicated.ICPAKproposed thatClause19(2)(a)beamendedtoreadasfollows:

beformulatedbytheAuthorityandsubmittedtotheCabinetSecretaryforconcurrenceandto theNationalAssemblyforapproval."

• 89.Accordingto ICPAK,thiswill ensure theindependence of the process inlinewithproper governance,

CommitteesObservation

TheCommitteeswereof&differentviewthat:theroleoftheCabinetSecretaryfor theNationalTreasuryneededtobeappreciatedwithinsectionI2ofthePublic FinanceManagementAct,Cap.4l2A,andassuchheCabinetSecretarycouldnot be divorced from the privatization process,particularly formulation of the privatizationprogramme.

Clause20(1)

InstituteofCertifiedPublicAccountantsofKenya(ICPAK)

• 90.ICPAKproposedthatthewords'CabinetSecretarybereplacedwith'Authority'sBoard. TheClauserequirestheCabinetSecretarytomakeconsultationswithpersonslikelytobe affectedbythePrivatizationofapublicentity.Thestakeholdersubmittedthattheproposed amendmentwouldensurealignmentofthefunctionwiththeresponsibleoffice.

ComrnitteesObservation

TheCommitteeswereofadifferentvicwandnotedthattheBillalreadyprovides fordesignatedfunctionsfortheCabinetSecretaryand thePrivatizationAuthority. Further,theroleoftheCabinetSecretaryfortheNationalTreasuryneededtobe appreciatedwithin section12ofthePublicFinanceManagementAct,Cap.412A, andassuch theCabinetSecretarycouldnotbedivorcedfrom theprivatization process,particularlyformulationoftheprivatizationprogramme.

Clause20(2)(c)

KenyaPrivateSectorAlliance(KEPSA)

• 91.KEPSAnotedthatClause20(2)(c)isnotclearonhow theCSwillcarryoutconsultation withmembersofthepublic.Publicparticipationisvital inmattersregardingprivatizationof publicentities.Theyhighlightedthatinthecontextwhereby,thepublicisnotinvolved,this

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

proposal shouldread asfollows;

• c)Membersofthepublicthroughpublicparticipation.

Committees Observation

TheCommitteesagreed to theproposal.

Clause22(1)

InstituteofCertifiedPublicAccountantsofKenya(iCPAK)

• 92.Amend theClausetoprovide forpublicparticipationbystakeholders.The stakeholder of the Constitution.Additionally,the Institute cited that publicparticipation helps build thattheClausebeamendedtoreadasfollows:
• a)Stakeholdersshallprovideinputandrepresentationsonadraftprivatizationprogrammefor considerationbeforeimplementationwithinI4daysoftheformulationoftheprogramme
• b)TheCabinetSecretaryshallprovidefeedbackontheincorporationofstakeholdercomments within7daysattheendofthestakeholderengagementexercise.
• c)WhereitsdeemedorestablishedbyarelevantNationalAssemblyCommitteethattherewas

CommitteesObservation

TheCommitteesnotedthatArticlell8oftheConstitutionobligatesParliamentto facilitate publicparticipation and involvementin the legislative and otherbusiness of Parliament and its committees.Further,under the National Assembly Standing Orders,the National Assembly conductspublicparticipation onbusinessesbefore it andtheconsiderationoftheprivatizationprogrammewouldnotbeanexception. Therefore,theCommitteeswereoftheviewthattherequirementneedednottobe provided forin theBill.

Clause23

PricewaterhouseCoopers(PwC)

• 93.Thestakeholderproposedtheintroductionofaprovisionthatprovidesaclearconsequence forinactionbeyondtheprescribedsixty-daytimeframefortheconsiderationperiodofthe PrivatisationprogrammebytheNational Assembly.Thestakeholdercitedthattheabsence

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

ofa clear provisionmayundermine accountability and delay decision-making.The stakeholderproposedtheinclusionofanewsub-clause23(b)toreadasfollows:-

23(b).

WherethePrivatizationProgrammeisnotconsideredwithinsixtydays,theNational Assemblymustprovidewrittenjustifictionwithinfivedaysandconcludeconsideration s

CommitteesObservation

TheConimitteesobservedthatpreviouslyintheannulledPrivatisationAct,2023, section22(5)hadprovidedfora"deemingprovision"whereifParliamenthadfailed toratifytheprivatizationprogramme,thenitwouldhavebeendeemedtohavebeen approved.Thisprovisionwasdeclaredunconstitutional andtheBill doesnothave a similar provision.Instead,it specifies titespecific timeframe within which the National Assemblyshallconsidertheprivatization programme.Therefore,the Committeesrecommended thatthe timelinebeincreasedfrom60daysto90days.

Clause25

LawSociety ofKenya(LSK)

• 94.LSKsubmittedthatthereisneedforthenational Assemblytoconductpublicparticipation stakeholdersorhavedifferentopinionsthattheNationalAssemblycanrationalize.Some changesmightoccurbetweenpublicparticipationiytheCSandtimeforconsiderationby theNationalAssemblyThepublic,has therighttoinfluence thedecisionsoftheNational Assemblythrough positivefeedbackfororagainsttheprogram,despitetheExecutive proposal.Thepubliccanalsosuggestabetterprogramme,whichwouldresultinapproval witnamendments.Includingthisensurescitizenshaveasayin majordecisionsinvolving publicassets.
• 95.Thenewsub-clauseshouldreadasfollows:-
• (d)conduct public consultations and stakeholder engagement on the proposed

ComnitteesObservation

TheCommitteesnotedthatArticleIl8oftheConstitutionobligatesParliamentto facilitatepublicparticipationandinvolvementintheLegislativeandotherbusinessof Parliamcntandits committees.Further,uider the National AssemblyStanding

JointRcpvrtoftheDepartmentalCommitteeonFinaniceudNationalPlanningandtheSelect ComrniticeonPublicDebtandPrivatizationontheConsiicuionofThePrivatizationBill,2025 (Natiorta/AssemblyBillNo.36of2025)

Orders,the National Assembly conducts publicparticipation on businesses before it and the consideration of theprivatization programme would not be an exception. Therefore,the Committeeswereoftheview that therequirementneeded nottobe provided forin the Bill.

Clause29

LawSociety of Kenya (LSK)

• 96.Thestakeholdernotedthatthereisneedtoupholdconstitutionalmandatesforoversight topromotetransparentandaccountableimplementationofprivatization.Theyhighlighted that this willallow adaptive managementofcomplexprogrammes,andsafeguard public forreviewbytheCSonceeverytwoyears.Thenewsub-clauseshouldreadasfollows:
• 2)TheCabinetSecretaryshallconductamandatoryreviewoftheprogressofeachPrivatization programmeatleastonceeverytwoyearsfromthedateofgazettement.Thereviewshallassess thelevelofimplementation,challenges encountered,andrecommendactions including continuation,amendment,orre-inclusionofaffectedentitiesinanotherprogramme.
• (3)Where,upontheexpiryofaprogramme undersubsection(l),theimplementationof the programmehasnotbeenfullycompleted,theCabinetSecretarymay
• a)extendthevalidityoftheprogrammeforaperiodnotexceedingtwoyears.
• b)includeaffectedentitiesinanotherPrivatizationprogrammeformulatedandapproved inaccordancewiththisAct
• indicatingthestatusofimplementationandtheintendedactionsunderparagraph(a)& (b).
• 4)Anydecision madeundersubsection(3)shall beguidedbyprinciplesofpublicfinance, accountability,andefficiency,andshallbesubjecttooversightbytheNationalAssembly.

CommitteesObservation

TheCommitteesnotedthatclause29oftheBillprovidesforthevalidityperiodofa privatizationprogramme capped at8years.Further,clause30of the Bill provides forthe mechanisms ofamending theprivatisationprogramme withproper safeguards on formulation and approvals.Therefore,the Committeeswere ofthe view that the provisionswere adequate.In addition,oversightasthemandate of the NationalAssemblyasperArticles94and95oftheConstitutionwouldaddressthe concernsraisedbythestakeholder.

Clause29(1)

InstituteofCertifiedPublicAccountantsofKenya(iCPAK)

• 97.ThestakeholderproposedthatthevalidityperiodofaPrivatizationProgrammebeamended tofiveyearsfromtheeightyearsintheBill,citingthattheeight-yearexecutionperiodwas toolongandneededtofallwithinthetenureoftheBoard.

CornmitteesObservation

TheCommitteesagreedtothestakeholdei'sproposaltoreducethevalidityperiod tofiveyears.However,theCommitteesfurtherrecommendedthattheclausebe amendedtoprovideforfouryears.

Clause32(1)

PricewaterhouseCoopers(PwC)

• 98.Thestakeholderproposedtheinsertionofnewsub-clausestoprovidecontextualcriteria forlimitingforeignpublicparticipation.Thestakeholdersubmittedthatthiswouldensure thatpotentialrisksofforeignparticipationsuchasthreatstonationalsecurity,economic exclusion ofcitizens,orforeigndominanceofstrategicassets,areassessedtransparently andcase-by-case.PwCproposed theinsertion of thefollowing:-
• Privatization,subjecttotheprovisiorisofthisActandanyotherapplicablelaw.
• persons inaspecificPrivatization,theCabinet Secretary,in consultation with the Authority,shallconsiderthefollowing:
• (a)thestrategicnatureof theassetorservicetobeprivatized;
• (b)nationalsecurity interests;
• (c)economicempowermentandinclusionofKenyancitizens;
• (d)thepotential impactonpublicwelfare,servicedelivery,oraccess;
• (e)theriskofforeigndominanceormonopolisticcontrol;and
• (f)Theconsistencyoftheprivatizationwithnationaldevelopmentgoalsandpolicies

CommitteesObservation

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2o25 (NationalAssemblyBillNo.36of2025)

The Committeesagreed to theproposal.

Clause32(2)(a)

instituteof Certified PublicAccountants ofKenya(ICPAK)

• 99.Amend theClause byreplacingthewordlimit'with'restrict'The stakeholderprovided thatthiswillenhanceclarity,asthetermlimit'issubjecttomisinterpretation.

CommitteesObservation

TheCommitteeswereofadifferentviewthatthetwotermsaresimilarandcould be used interchangeably.

Clause32(2)

• 100.ThestakeholderproposedthatClause 32(2)beamendedtoprovideacriterionfor concurrencewiththePrivatizationAuthoritytoinformtheCabinetSecretary'sdecision. ThestakeholdercitedthattheBillgrantstheCabinetSecretaryoverlybroaddiscretionto limitorprescribeKenyanparticipationinprivatizationwithoutclearcriteria,institutional checks,ortransparencyrequirements.Theprovisionwasproposedtoreadasbelow:-
• 32(2)TheCabinetSecretarymay,inconsultationwiththeAuthority andsubjecttopublic interestconsiderations,directtheAuthorityto:
• (a)limitparticipationinanyprivatizationtoKenyancitizens;or
• (b)ensurethatthereisaspecifiedminimumlevelofparticipationbyKenyancitizensin anyprivatization:

Providedthatanysuchdirectionshall—

• (i)bebasedonclearlydefinedandpublishedcriteria,includingbutnotlimitedto:
• (a)protectionofnationalsecurityinterests;
• (b)safeguardingstrategiceconomicsectors;
• (c)promotionofinclusiveeconomicempowermentincludingparticipationofyouth, women,personswithdisabilities,andmarginalizedcommunities;
• (d)enhancementoflocalenterprisedevelopmentandjobcreation;
• (e)preventionofmonopolisticoranti-competitivepractices;
• (i)beprecededbyapublicstakeholderconsultationprocessinlinewithArticle10ofthe Constitution;

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill2025 (NationalAssemblyBillNo.36of2025)

• (ii)beaccompaniedbyawritten statementofreasons,andpublishedintheKenya GazettewithinI4daysofissuance.

CommitteesObservation

s onpublicstakeholderconsultationsandaccompanimentofawrittenstatement ofreasons.

Clause 32 (2) (b)

KenyaPrivateSectorAlliance(KEPSA)

• 101.ThestakeholderwasoftheviewthattheminimumfractionofKenyanswhoparticipatein byinsertingthewords"above50%levelofparticipationsbyKenyans."Thenewsub-clause shouldread asfollows;
• b)EnsurethatthelevelofparticipationbyKenyansisabove5o%inanyPrivatization program.

CommitteesObservation

TheCommitteeswereofadifferentview thatfixingaspecificpercentageof participation byKenyansinlawwoulbecounter-intuitiveandmaynotbe practicablein certaincircumstances.TleCommitteesnoted thatthe broad parameterswereadequate.

Clause32(3)

InstituteofCertifiedPublicAccountantsofKenya(lCPAi)

• 102.DeletetheClauseonrestrictinggovernmententitiesfromtakingpartinprivatization.The stakeholdercitedthatthiswouldavoidconflictofinterestandensurethatthemainobjective of delinkinggovernment isupheld.

CommitteesObservation

TheCommitteeswereofadifferentviewthatclause32(3)oftheBillshouldbe retained.TheCommitteeswere notpeisuadedbythereasonsgiven for the deletionsince thesubclauseisintendedtorestrictnationalgovernment-owned

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

Clause38

Institute of Certified PublicAccountantsofKenya(ICPAK)

103.ICPAKproposed theintroductionofanewsub-clause3toread asfollows-

• (1)TheAuthorityshallappointsuchanumberofreputablevaluers,comprisingtherelevant identifiedforprivatization.
• (2)The independent valuers envisaged under subsection (l) may include financial experts, Managementconsultants,legalexperts,Taxexperts,Actuarialfirms,Propertyvaluers,Plant& machineryvaluers'plant&equipmentvaluersproperlyvaluethefixedassets,technicalexperts orEnvironmentalauditors
• (3)Thevaluersshallprepareacomprehensivereport containing-
• (a)historical financialperformanceaswellasfutureearningspotential andstrategic valueof thepublicentity;
• (b)anyuniqueassetsandliabilities,contractualobligations,orlitigationrisksshouldbe identifiedandfactoredintothevaluation.
• (c)recommendedfairmarketvaluationrangeaswellastheunderlyingmethodology, analyses,assumptionsandlimitations;
• (d)Thereservepriceorminimumpriceforthesaleoftheenterpriseassetsorshares.
• (4)TheAuthoritymayrecommendrestatingthevaluationexerciseifmarketconditionschange materiallypost-valuation.
• (5)Anychanges tovaluationscopeor assumptionsmustbeapprovedbytheAuthoritybefore revisingthevaluationconclusions.
• (6)Thedetailson thevaluationprocessshallbeprescribedinRegulations.
• 104.ICPAKsubmittedthat these proposedamendmentswould enhanceprofessionalism, objectivevaluation,andprotectionofpublicinterest.Additionally,theInstitutenotedthat authoritynegatesprofessionalismandmaybesubjectto abuse.

CommitteesObservation

TheComrnitteeswereofadifferentviewthattheprovisionwasadequateand thatdetailsonhowtheprocesswouldbecarriedoutshouldnotbesetoutin the Bill.In any case,if need be,this could beprovided for in regulations.

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

Clause38(2)

KenyaPrivateSectorAlliance(KEPSA)

• independentAuditFirm".Theynotedthattheprivatizationprocessneedstobetransparent onassetvaluation.Intheeventtherearenoguidelineintermsofhowtheauditisconducted orpublicdisclosureofvaluationreports,thereisariskthattherespectiveassetsmightbe soldbelowtheirrespectivemarketvaluehericebenefitingprivateentitiesattheexpenseof thetaxpayers.Thenewsub-clauseshouldreadasfollows;
• 2)TheValuationshallbeperformedbyanindependentAuditFirmappointedbythe Authority.

CommitteesObservation

TheCommitteeswereofadifferentviewthattheclausewasadequate.

PricewaterhouseCoopers(PwC)

• 106.Thestakeholderproposedthedeletionofclause38(2) andreplacingitwiththefollowing:

"Allvaluationsshallbeconductedbyanindependentthird-partyfirmlagentselected throughacompetitiveprocessandapprovedbytheAuthority.

• 107.Thestakeholdersubmittedthatthiswillensureobjectivityandprotectpublicinterestinthe valuationprocess.

Committeeobservation

TheCommitteeswereofadifferentviewthattheclausewasadequate.

Clause41

nstituteofCertifiedPublicAccountantsofKenya(ICPAK)

• 108.TheinstituteproposedthattheCabinetSecretarydefineandprovidekeyelementsthat constitute'critical businesscontinuity'duringprivatization.Thestakeholdersubmitted that contextofcapitalinvestmentordisposalduringprivatization.

CommitteesObservation

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill2O25 (NationalAssemblyBillNo.36of2025)

TheCornmitteeswereofadifferentview that therewasnoneed todefine the term usiness continuity'.Further,the stakeholder had not proposed a definitionoftheterm.

Clause 45(1)

Kenya Private Sector Alliance (KEPSA)

• 109.Thestakeholderwasoftheviewthattheprivatizationprocessleadstolossofjobsor reducedlabourprotectionsincemostprivateentitiesprioritizeprofits.Theyhighlighted that thereisneedforprovisionthatsafeguardstherightsofworkerssuchasguaranteesof continuedemploymentpost-privatizationorseverancepackages.Thestakeholderproposed workers'rightshavenotbeen addressed andwheretheperiodforfilinganobjectionhaslapsed"
• Ilo.Thenewclauseshouldreadasfollows;
• 1.AnagreementtogiveeffecttoaPrivatizationshallnotbesignedininstanceswhere fling an objection has lapsed.

CommitteesObservation

The Committees observed thatclause 35(g)ofthe Billprovides foremployee protection mechanism.Therefore,the Committeeswere of the view that this was adequate.

Clause 45(1)

Kenya Private Sector Alliance (KEPSA)

• I11.AmendtheBill toprovidespecifiedtimelineswithinwhichanobjectionmaybefiled.The stakeholderproposedthattheClausebeamendedtoreadasfollows:

Anagreementtogiveeffect toaPrivatization shall notbesigneduntil the2l-dayperiodforfiling an objection haslapsed

CommitteeObservation

TheCommitteeobserved thatPartVlloftheBillprovidesforreviewsand appeals and that the mention ofobjections in the clause appeared erroneous. Further, the Third Schedule to the Bill provides for administrative details

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

includingtimelines.Therefore,theCommitteedidnotagreetoprovideforthe timelines.

LwSocietyofKenya(LSK)

Clause45

• 112.LSK proposed amending the clause to provide an Objection Schedule.In their view, therebypreventingdelayscausedbyambiguity.Thenewsectionshoulireadasfollows:-
• agreement
• 3)TheAuthorityshallmakeadecisionwithrespecttotheobjection andgiveacopyofitsdecision
• 4)TheAuthority'sdecisionshall setoutthereasonsforthedecision.

CommitteesObservation

TheCommitteesobservedthattheclauseprovidesforobjectionswhichappears tobeerroneous since PartVllofthe Billprovidesforrevievs and appeals. Despitethat,the ThirdScheduleto the Billprovidesforetailson conductof reviewsandappeals,settingouttimelines.Therefore,theCorrmitteeswereof theviewthattheBillalreadyaddressesthestakeholder'sconcerns.

• 113.Additionally,LSKproposedamendingClause45byinsertingthewordsunder theSchedule immediatelyaftertheword"objection"sothattheclausereadsasfollows:Anagreement theschedulehaslapsed.Thiswillbeintandemwiththeirproposalontieobjectionschedule.

CommitteesObservation

thathieclauseprovidesforobjectionswhichappearstobeerroneoussincePart VlloftheBillprovidesforreviewsandappeals.Thecross-referenicetotheThird ScheduletotheBillwouldthereforeprovitieclarityontheperiodoffilinga review.

JointReportoftheDepartmenialCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

Clause 47(2)

PricewaterhouseCoopers(PwC)

• 114.ThestakeholderproposedtheinclusionofaprovisionrequiringtheAuthoritytopublishin itsmandate.ThePwCsubmittedthatthiswouldprovidetransparencyonthecostsincurred inthePrivatizationprocess.

CommitteesObservation

The Committees notedthatthe Bill had notprovided foradvisorsand their payments,hence this could notbe expressly provided for in the Kenya Gazette. In any case,clause 47(2)(d) provides for "such other information as the Authority considers appropriate" which could fall within the stakeholder's proposal.

Clause49

PricewaterhouseCoopers(PwC)

• 115.PwCproposedamendingtheClausetoreadasfollows:-

"Theproceedsfromprivatizationofanypublicentity shall bedepositedintothe ConsolidatedFundasrequiredbythisAct.However,upto20%ofthetotalproceeds maybeallocatedtotheentitythatissubjecttoprivatizationforthepurposesoftransition support."

"TheallocationmustbeapprovedbytheCabinetSecretaryfortheNational Treasury andEconomicPlanningoranauthorisedpersonaspertheActwithequivalentrolesand obligationsasthoseoftheCabinetsecretary.

• 116.Alternatively,PwCproposedtheintroduction ofaprovision creatinga Privatization FacilitationFund.Consequently,thestakeholderproposedtheintroductionofadefinition ofthe"PrivatizationFacilitationFund"insection2oftheBill.

CommitteesObservation

The Committees observed that theproposal wasproblematic asitwouldeat intotheproceedsfromthesaleofapublicentity'sshareholdinganddefeatthe purposes ofprivatization as envisaged in clause 6 of the Bill.Further,the Committees werenot persuaded with the proposed establishment ofa PrivatizationFacilitationFund,itsobjectsandnoted thatitwouldhavefinancial implications.TheCommittees therefore did notagreetotheproposals. However,theynotedthattheproceedsshouldbepaidinto theConsolidated Fund andnotdepositedinaspecial interest-bearingaccount.

Ctause51(3)

ricewaterhouseCoopers(PwC)

• 117.PwCproposedamendingtheclausetoreadasfollows:-

s oftheAuthority'sdecision.TheAuthoritymuststayexecutionofprivatizationuntil the HighCourtdetermines thematter

• 118.Accordingtothestakeholder,thisprovisionwillnotonlyuphold andstrengthenprocedural fairnessbutalsoprovideanessentiallegalrecoursetopreventrushedorunfairdecisions.

CommitteesObservation

TheCommitteesagreedwith the stakeholderinprincipleforan aggrieved ighCourtifdissatisfiedwiththeAuthority'sdecision.TheCermitteesnoted thatthetimelineswouldbeprovidedforintheThirdScheietotheBill.The Cormittees recommended deletion of provisions provicing for the establishment,composition,functionsandconductofthePivatizationAppeals BoardasitfallswithintheambitoftribunalswithintheJuiciryasprovidedfor underArticle I69(l)(d)of the Constitution and the need for the quasi-judicial botytobeindependentfromtheexecutive.

Clause53

• 119.LSKnotedthattheappointmentof theChairperson andmembers of thePrivatization AppealsBoardshouldbemadebytheChiefJustice,ratherthanbythePresidentandthe Cabinet Secretary.This is to uphold the principles ofindependence,impartiality,and

CommitteesObservation

TheCommitteesrecorendedtodeleteclauses52,53,54,55,56,57,and58of the Bill providing for tlie establishment,functions,composition,conductand related provisions on the Privatization Appeals Board.he deletions are informedbythefollowingreasons:

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• (a)In OkoitivJudicial Service Commission & 2others;Katiba Institute(Interested Party)(Petition 197 of 2018) [202I]KEHC461(KLR),the petitioner sought various reliefs from the court with respect to the constitution,composition Constitution ofKenya,2010.The High Courtheld thatlocal tribunals created under article I69(l)(d)of the Constitution are subordinate Courts in Kenya; theappointmentandremovalofmembersofthelocal tribunalscreated under article I69(l)(d)of the Constitution by the Executive violates the principleof separation ofpowers,contravenes theright tofairhearingunder article 50 of the Constitution and infringes on the independence of theJuciciary;and that the local tribunals under article I69(l)(d) of the Constitution must be transited to theJudiciaryandthe appointmentandremovalaftheirmembers be untiertaken by theJudicial Service Commission.
• (b)Although the Bill names theappealsbodya Privatization AppealsBoard,there isa dangerthattheBoardmaynotbealigned to theHigh Courtdeclarations inPetition197of2018whichwasalsoupheldattheCourtofAppealinAttorney
• (c)The appointmentof the members of the Privatization AppealsBoard by the Executiveviolates theprincipleofseparation ofpowers and contravenes the right to fair hearing.Further,as provided in the Bill,the Board would lack independence.
• (d) The proposed AppealsBoard hasfinancial implications and thiswould impose extra financial burden in theoperationalizationoftheAct.

Clause58

InstituteofCertifiedPublicAccountantsofKenya(iCPAK)

• 120.AmendtheBill byreplacingtheword'ReviewBoardwith'AppealsBoard'.Accordingto ICPAK,thisisa typo,andtheproposed amendmentwouldenhanceclarity.

CommitteesObservation

TheCommitteesrecommendedtodeleteclauses52,53,54,55,56,57,and58 of the Bill providingfor the establishment,functions,composition,conductand relatedprovisions on thePrivatizationAppealsBoard.

Clause59(2)

PricewaterhouseCoopers(PwC)

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtardPrivatizationontheConsiderationofThePrivatizationBill2025 (NationalAssemblyBillNo.36of2025)

• 121.ThestakeholderproposedtheinsertionofanewClause59(2)toprovidefordisclosure requirementsforall donations,grants,andgiftsmadeto theauthority.The stakeholder proposedthatClause59(2)beamendedtoreadasfollows:-

"Theauthority shall disclose thefunds highlightedin sub-clause(c)and(d),statingits sourceandintendedpurpose."

• 122.ThestakeholdersubmittedthatpublicdisclosureoftheAuthority'sexternal fundingallows usedaccordingly.

CommitteesObservation

TheCommitteesdidnotagreetothestakeholder'sproposaliecausethePublic FinanceManagementAct,Cap.412A,alreadyprovidesforfinancialreporting.

Clause61(2)

PricewaterhouseCoopers(PwC)

• [23.PwCproposedtheinclusionof anewClause6l(2)(e) toensuretheAuthority factorsin paymentstoexternaltechnicalconsultantswhenpreparingitsanriualesximatesasitwould
• technicalconsultants."

CommitteesObservation

TicCommittees did notagree to theproposal due to the financial implications

Clause 63(2)

PricewaterhouseCoopers(PwC)

• 124.PwCproposedamending theClausetoprovidefortheinclusionofanimpactassessment allowfortransparencyandaccountabilitybyensuring theAuthorityreportson the outcomesofprivatization.PwCproposedtheinclusionofnewsubclausesasfollows:-
• (csocio-economicimpact assessmentsofprivatizedentities,includingeffectson employment,localcommunities,andmarketcompetition;

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanninyandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivtizaionBill,2025 (NationalAssemblyBillNo.36of2025)

• (d)performanceofprivatizedentities,includingfinancialperformance,servicedelivery outcomes,andcompliancewithpost-privatizationobligations

CommitteesObservation

TheCommitteesobservedthatclause63oftheBillprovidesforsubmissionby thePrivatizationAuthority ofitsannual reportto theCabinetSecretary.The proposals include itemswhichwouldnotbewithin thepurviewof theAuthority since it extends its mandate post-privatization. The privatised entities would answerable totheirshareholders.TheCommitteesthereforedidnotagree to the proposals.

Clause 68(d).

Institute ofCertified PublicAccountantsofKenya (ICPAK)

• 125.ThestakeholderproposedtheamendmentoftheClausetoalignpenaltiesintermsof amountsandimprisonment.ICPAK submitted that there was an inconsistency in the penalties,and theproposedamendmentwouldenhanceeaseof application.

CommitteesObservation

TheCommitteesnoted thestakeholder'sconcernsbutwasoftheviewthatthe penalties were not inconsistent.In addition, the stakeholder had not given alternative proposals on aligning the penalties.

Clause69

PricewaterhouseCoopers(PwC)

• 126.Thestakeholderproposedthatthe ClausebeamendedtoprovidethattheCabinet
• "(2)TheCabinetSecretaryshall,priortomakinganyregulationsunder theAct, publish draftregulationstoinvitepublicconsultations."

CommitteesObservation

The Committees observed that the Statutory Instruments Act, Cap.2A, providesfor theneed formaking appropriate consultationsbefore astatutory instrumentismade.Section5(l)providesasfollows-

JointReportoftheDepartmentalCommilteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivafizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• (a)havea direct,ora substantial indirecteffectonbusiness;o
• (b)restrict competition;

whoarelikelytobeaffectedbytheproposedinstrument.

Therefore,theCommitteeswereoftheviewthatitwasnotnecessarytoprovide fortheconsultationssincethisisalreadycateredfor.

FirstSchedule

PricewaterhouseCoopers(PwC)

• 127.ThestakeholderproposedthattheFirstScheduletotheBillwhichprevidesfortheconduct ofbusinessandaffairsoftheboardbeamendedtoaddressthelossofquorum thatmay ariseintheboardproceedings.Thestakeholdersubmittedthatparagraph3beamendedto readasfollows:-
• "3.Quorum
• (a)Thequorumfortheconductof businessatameetingof theBoardshall betwo-thirds ofallthetotalmembersoftheBoard.
• (b)WhenthereisnoquorumatorforthecontinuationofameetingoftheBoardonly becauseoftheexclusionofamemberoftheBoardunderparagraph3(a),theother memberspresentmay,iftheydeem itexpedientsotodo
• (1)postponetheconsideration of thatmatteruntil thereisaquorum;or
• (2)proceed to consideranddecide thematterasif therewasaquorum
• 128.Accordingtothestakeholder,theBoardmayfacefrequentdelaysoraninabilitytodecide onmattersduetoquorumloss.Thissub-paragraphclarifiesprocedureswherequorum issues arisefromconflict-of-interestexclusions,ensuringoperationalflexibility.

CommitteesObservation

TheCommitteeswereofadifferentviewthatparagraph3oftheSchedulewas adequate.

JointReportoftheDepartmentalCommitteeonFinanceandNationalPiaiiigandtheSelect ConmitteeonPublicDebtandPrivatizationontheConsiderationofThePrivaiiationBill,2025 (NafionalAssemblyBillNo.36of2025)

NewProposal

Kenya PrivateSector Alliance(KEPSA)

• 129.Thestakeholderhighlightedthatthestrategicnationalassetsaretheprideofthenation hencetheownershipneedtobespreadacrossthepopulation.Thiswilldeterrentseekers thesection byinsertingthewordsprivatizationofentitiesdeemed as strategicnational assets,should be done through initial publicoffering".The new Section should read as follows:

I.lnitialPublicOfferingofshares.

Wheretheselectedmethodofprivatizationisthroughinitialpublicofferofshares,the offeringofsharesshallbeundertakeninaccordancewithCapitalMorketsAct,Cap 485A,privatizationofentitiesdeemedasstrategicnational assets,shouid be done throughinitialpublicoffering

CommitteesObservation

The Committees noted thatclause34ofthe Billprovides for thedifferent methodsofprivatization,including initial publicofferof shares.The Committees further noted the stakeholder'sconcerns which are addressed in the Billand through amendments to be proposed by the Committees in safeguarding strategic national assets. The Committee has proposed amendment to clause 2l(2) to include strategicnational assets as one ofthe considerations during identification and determination ofentitiesforprivatization.Further,clause22 Assemblyofprivatizationprogramme.

NewProposal

Institute of CertifiedPublicAccountants ofKenya(iCPAK)

• 130.The institute proposed amendments to provide for privatization monitoring.The stakeholderproposedthattheBillbeamendedtoprovideasfollows:

TheInstituteproposedapost-privatizationmonitoringasfollows:

• (l)TheAuthorityshallmonitorandoverseetheperformanceofprivatizedpublicentities foraperiodoffiveyearspost-transaction.

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill2025 (NationalAssembiyMillNo.36of2025)

• (2)Theprivatizedentities shall berequiredtosubmitperiodicfinancial statements, operatingstatistics,andcompliancereportstotheAuthoritytofacilitatemonitoring.
• verifycomplianceandperformancelevels.
• (4)Anybreachofcontractualobligations,whichmayincludeinvestment commitments, servicestandards,andstaffretention,shallbeanoffenceunderthect.
• divestmentordilutionofownershipincircumstanceswherethereiscontinuedbreachof termsofthecontract.
• period.
• (7)TheAuthority shallannuallypublishconsolidatedmonitoringreportsonprivatized entitiesandtablethembeforeParliament.
• (8)Suitableamendments should bemadeinrelevantregulationstorequireprivatized entitiestoprovideinformationrequiredbythecommissionformonitoring.
• privatizedentitiesintheinfrastructureandpublicservicesectors.
• (10)TheAuthoritymayenforcethroughimposingpenalties,cancellationofprivatizationorrenationalizationaspertheprovisionsinthecontract,foranynon-compliance."

CommitteesObservation

TheCommitteesobserved thatclause9(g)oftheBillprovidesforoneofthe functions of the Privatization Authority as tomonitor andevaluate the implementationprivatizationprograminKenya.TheCommitteewasofthe viewthat this was adequate and that once entitieswere privatized,the Authority'sroleshouldnotextendintotheaffairsofthoseentities.

NewProposal

InstituteofCertifiedPublicAccountantsofKenya(iCPAK)

• TheGovernmentshouldensurethatthereisaframeworkfortheretentionofstaffasa resultofprivatizationprocesses.Hence,aneedfora transitional clause intheBill.

JointReportoftheDepartmentalCommitteeonFinanceandNationalPieuningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

ComimitteesObservation

The Committeesobserved thatclause 35(g)ofthe Billprovides foremployee protection mechanism. Further, the Employment Laws would apply on employee matters. Therefore,the Committees were of the view that clause 35(g)of the Bill was suficient.Separately,clause75of the Billprovides for the transition ofstaffof thePrivatization Commission to theproposedPrivatization Authority.

InstituteofCertifiedPublicAccountantsofKenya(iCPAK)

• 132.The accountingofficersof thesrate-ownedenterprisesaffectedbyprivatizationshouldhave rolesclearlydefinedduringthesigningoftheprivatizationagreement.Thiswillbeimportant astheywillbetheonesfullyinchargeofimplementingtheagreement.

CommitteesObservation

TheCommittees noted that the obligationsofaccountingofficersareclearly spelt out in relevant laws including the PublicFinance ManagementAct,Cap. 412A.Therefore,the Committeeswere of theviewthat these obligationswould notneed to bereplicated in cheBill.

3.4GENERALSUBMISSIONS

3.4.INAIROBICOUNTY KENYATTA INTERNATIONAL CONVENTION CENTRE(KICC)

The two Committeesengaged theresidents ofNairobi County atKenyatta International Convention Centre(KiCC).The publicwas sensitized on clauses of the Bill and thereafter allowedtogiveviewsontheBill.Theysubmittedasfollows:

MauMauChildrenPostColonial Elites-Coastal Region

• 133.Thestakeholderproposed theestablishmentofaVeteranIntegrationFundwhichshall receiveI-2percentofnetprivatizationproceedsfrom parastatalsintheCoast.The stakeholdersubmittedthatthiswouldcaterforpensiontop-ups,healthinsurance,housing grantsandvocationaltrainingforveteransandtheirdependents.
• 134.Thestakeholderproposedthatparastatalsandthenewinvestorsshouldreserveaminimum hiringquota forregisteredMauMauveteransand theirhouseholds.
• 135.Thestakeholdersubmittedthatlowvaluecontractsshouldbereservedforenterprises ownedbyveteransorveterangroupstosupplygoodsandservicesinparastatals.ltwas

• furthersubmittedthatproceedsfrom privatizationshouldbeusedfor capacitybuilding, businessdevelopmentservicesandpreferentialaccesstomicrofinance.
• 136.Thestakeholderproposedamandatoryprovisionforveteranhousingorcommunityland trustswhereprivatizationincludeslandtransfers.
• 137.IncludeMau Mau veteranrepresentation inCountyAdvisoryCommittees which shall overseepostprivatizationcommunitybenefits.

MauMauChildrenPostColonial Elites-NorthEasternRegion

• 138.The stakeholder proposed a mandatorySocial EconomicImpactAssessmentin ASAL countieswhichshallbemadepublic,addressinghowservicedeliveryshallbeaffectedbyany privatization.
• wassubmittedthatcountyassembliesshouldalsosubmitbindingrecommendationswhich mustbeaddressed.
• 140.Thestakeholdersubmitted thatthesaledocumentsshouldinclude enforceablelocalcontent, employmentandtrainingobligationswithmeasurableKPlsandfinancialpenaltiesfor noncompliance.
• 141.ltwasproposed thataschedule thatenablesshareallocation,procurermentset asidesand specificuseofproceedsforveteranwelfareshouldbeincluded.
• 142.Thestakeholderproposed thataproportionof transactionproceedsshouldbe allocatedto registeredcountycommunitydevelopmenttrustsoranational fund tofacilitate intercounty projects,includinginfrastructure,livelihoodprogrammesandveteranweifare.
• 143.Thestakeholderfurtherproposed thatfunctions thatarestrategicfornationalresiliencein ASALssuchasbulkwaterstoragefordroughtresponse,shouldbeidentifiedandexcluded fromsale,unlessthereisasatisfactoryalternative arrangement.
• 144.ThestakeholdersubmittedthatParliamentOversightCommitteesshiould conductpost transaction audits and performance reviews and subsequently publicize the findings. additionally,itwasproposedthatthereshouldbeanindependentombudsmantoreceive communitygrievances.
• 145.Thestakeholderproposedtheestablishmentofalocalgrievancemechanismandafundto addresstransitionalclaimssuchasemploymentdisputesfor atleastthreeyearsafter transfer.

MauMau ChildrenPostColonial Elites-WestPokotRegion

• 146.The stakeholdersproposedthat thereshouldbe5-10percentcommunityequityor perpetualbenefittrustfromprivatizationinvolvingassetsphysicallylocatedinWestPokot.

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlaniingandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePiivlizationBill,2025 (NationalAssemblyBillNo.36of2025)

• Itwasfurtherproposedthatthisshallbemanagedbyanindependentruncommunity developmenttrust.
• 147.Thestakeholderssubmittedthatthereshouldbebindingtargetsforlocalcontentandjobs. Itwasproposedthatatleast40percentshouldbesetasidefornonspccializedjobsand20 percentforskilledjobs.Forlocalcontent,itwasproposed that60percentofgoods and routineservicesshouldbefrorMSMEsregisteredinthecounty.
• compactenumeratingannual obligationto theregionsuchaswaterpoints,bursariesand climateadaptationassets.
• 149.ltwasfurthersubmittedthatthereshouldbetariffsandservicequalityfloorsforutilitiesand essentialservices,performancelinkedcapsandservicelevelagreements.Additionally,itthe
• 150.Thestakeholderssubmittedthatthereshouldbelandandresettlementprotectionsthat conformwithexistinglawsandinternationalsafeguards.ltwassubmistedthatthismay include;free,priorandinformedconsultationaswellasgrievancecommitteesatsubcounty level.
• 151.Thestaleholderssubmittedthatwhererevenuestreamsdependonassetslinkedwithlocal naturalresourcesincluding;localwater,landandforests;thecommunitydevelopmenttrust shouldreceive2-5percenttofacilitatepublicgoodsintheregion.
• 152.Thestakeholdersproposedthatveteransshouldbeallowedanaccesswindowinhiring training,housingandprocurement.
• 153.Thestakeholderssubmittedthatinformationmemoranda,evaluationcriteria,winningbids andannual impactauditsshouldbepublishedinanopendataportal toenablemonitoringby citizens.

Mau Mau ChildrenPost Colonial Elites-Nyanza Region

• 154.ThestakeholdersproposedtheestablishmentofaNyanzaCommunityandVeteransTrust ineachprivatizedassetintheregion.
• 155.Thestakeholdersproposedsocialimpactassessmentsasaconditionforeveryprivatization. Additionally,provision of local jobs,procurement quotas,skills transfer,environmental safeguardsandpublicscorecardswerealsoproposedbythestakeholder.
• 156.Thestakeholderssubmittedthat5-10percentofprivatizationproceedsshouldbepreserved intoaregional stabilizationandtransitionfundtofinancesmallholderupgrading,MsME incubation,veteranswelfareandlastmileserviceexpansion.
• 157.Thestakeholdersproposedlandandresettlementprotectionswherepublicortrustlandis implicated.

• 158.ThestakeholderssubmittedthattheWarehouseReceiptsSystemshouldbeintegratedto providelinkagesforriceandmaizevaluechainsintheregion.ltwasfurthersubmittedthat servicefloorobligationsforunderservedcommunitiesshouldbeenforced.

Committeesobservations

TheCommitteesnotedwithappreciationtheimportantrolethatthemaumau veternsplayedinthestruggleforKenya'sindependenceandtheirparticipationin submittingtheirviewsontheBill.

TheCommitteesfurthernotedthattheBillprovidesforthlegalframeworkon privatizationandthatitcontemplatestheactiveinvolvementofhostcommunities andaffectedentitiesintheformulationandimplementationoftheprivatization prograrime.Forinstance,clause20 providesfor consultationswith organisations representingpersonswhoarelikelytobeaffectedbytheproposedprivatizationand involvernentofthemeiriiersofthepublic.Further,clause35providesfortheitems that the privatization proposal shall contain.In particular,clause 35(l) (h)and (i) providesiorarecommerdationonhowtoundertakesocio-economicinvestments to thehostcommunityandhebenefitstobegainedfroimtheproposedprivatization respcctively.

TheConmitteesthereforeurgedthestakeholderstobeactiveparticipantswhen calleeiuponduringtheimplementationofprivatizationprogrammesoncetheBill becomeslaw.

3.4.2KISUMUCOUNTY

TheCommitteesengaged theresidentsofKisumu CountyatTom Mboya LabourCollege.The publicwassensitizedonclausesof theBill andthereafterallowedtogiveviewsontheBill.They submittedasfollows:

• 159.During the public participation hearings,residents strongly emphasized the need for openness,theexercisecouldbepronetocorruption,undervaluationofassets,andinequality inthedistributionofbenefits.Citizenscalledfor cleardisclosure ofall transactionsand insistedthatdueprocessbefollowedtoensuretheexerciseservesthepublicgoodrather thanprivateinterests.
• 160.Concernswere alsoraised aboutthewelfareofemployeesinstate-ownedentitiesslatedfor privatization.Residentsproposed that thelawshouldprovidean explicitroadmap for handlingworkers,withguarantees tosafeguardjobs andprotectlivelihoods.They also

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningalidtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizaiionRill,2025 (NationalAssemblyBillNo.36of2025)

• stressedthatservicedeliverymustnotbecompromisedandthatprivatizationshouldnot resultintheerosionofessentialservicesforcitizens.
• foreign investors,warning that this couldunderminenationalownership and weaken andproposedthatthegovernmentclarifywhetherdebtsofstate-ownedenterpriseswillbe clearedbeforetransfertoprivateinvestors.
• 162.Additionally,residentsunderscoredtheimportanceofpublicparticipationateverystageof theprocess.TheyrecommendedthattheCabinetSecretaryberequiredtoseektheviews protect national interests,citizens alsourged thegovernmentto institutemeasuresthat safeguardagainstpolitical interference,revenueloss,andinsidertrading,therebymaking privatizationbeneficialtothecountryasawhole.

3.4.3ISIOLOCOUNTY

TheCommitteesengaged theresidentsof IsioloCountyatCatholicDioceseHall.Thepublicwas sensitizedonclausesoftheBillandthereafterallowedtogiveviewsontheBill.Theysubmitted asfollows:

• 163.SomeresidentsfromIsioloCountysupportedoftheBillnotingthatsomegovernmentarguedthatsuchenterprises,whichareadrainonpublicmoneywithoutanyvisiblebenefits, shouldbeprivatizedtokeepthepeopleawayfromheavytaxation.lntheiropinion,thebill is anopportune one,in thatitseekstocreate abroadschemefor addressingtheissueposed managementofsuchcompanies.Theyopinedthatitis simpler forprivateinvestors to introduceinnovation,improveefficiency,andsecureprofitability,ascomparedtowhensuch companies are still in the public sector,where bureaucratic inefficiencies always mar performance.
• 164.TheyalsowentontoexplainthatsuccessfulprivatizationunderthisBillcouldultimatelylead toeffectivedeliveryofservices,jobcreation,andimprovedcontributiontotheeconomy. Theresidentsalsocorrelatedprivatizationwiththecountry'smountingdebtburden.They pointedoutthatthegovernmentcontinuestoborrowheavilytofinanceexpendituresand tosupport loss-makingparastatals,whichaddsto thenational debtproblemof thecountry. fundsthatcanbeused torepayloansandreduce thedebtservicingburden.Theyargued that,ifwell handled,proceedsfromprivatizationcouldfreeresourcesthatarecurrently utilizedbythegovernmenttorescuestrugglingbusinessesandcouldthereforebepumped intosectorssuchashealthcare,education,andinfrastructure.

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2O25 (NationalAssemblyBillNo.36of2025)

• 165.However,otherresidentsofIsioloCountystronglyopposedtheBillontheargumentthat itcontainsloopholesthatarelikelytobenefitafewpoliticalleadersagainstthecommon public.TheywereconcernedthatthisprivatizationBillwouldbeusedasatoolofvested interests,wherecurrenticaderswillemploytheprocessforfurtheringtheiragendasagainst commoncitizens.Theresidentssubmittedthatwhile thereareafewunderperformingstateownedenterprises,privatization neednotbe the answer.Instead,they calledfor wereindeedestablishetocater totheneedsofthepublic,andtherefore,theirworth shouldnotbesolelyicasuredintermsofmoneyloss.
• 166.Additionally,thenotedthattherearehighchancesprivatizationwillincreasethedangerof unemployment.Thecitizens fearedthatprivatizationwouldinevitablyleadtomassive majorissue.

3.4.4TANARIVERCOUNTY

ThetwoCommitteescngc theresidentsofTanaRiverCountyattheCountyHall Hola.The publicwassensitizedonclausesoftheBill andthereafterallowedtogiveviewsontheBill.They submitredasfollows:

• 167.The residents ofTana River County expressed mixed feelings on the Bill,with some monopoly.Theyargued thatthebillwillbringeconomicbenefistothecitizens,forboth theyouthandwomen,hwever,theyexpressedtheneedforbetterregulationsandcontrol theneedforaccountability,fairnessandtransparencyintheprivatizationprocess.Someof theresidentswereoftheviewthatthegovernmentcanmanageitsstrategicassetsandin caseofunlimitedresourcesthegovernmentshouldconsiderprivatizingloss-makingentities. Lastly,thepublicurgedthegovernmenttoconducteffectivepublicparticipationbefore any privatization.

3.4.5KITUICOUNTY

TheCommitteesengagedthercsidentsofKituiCountyatKituiMulti-purposeHall.Thepublic wassensitizedonclausesoftiiaBillandthereafterallowedtogiveviewsontheBill.They submittedasfollows:

• 168.Themembersofthepublicsupportedprivatization,citinginefficiencies,corruption,andpoor

JointReportoftheDepartmeiICommitteeonFinanceandNationalPiauningandtheSelect CommitteeonPublicDebtardivatizationontheConsiderationofThePivafizationBill,2025 (NationalAssemblyBillNo.3Gof2025)

• enhance efficiency,promote competition,andreduce corruption,ultimatelyimproving thegovernmentretainssomelevelofcontrol,ensuringshareallocationsareaffordableto ordinaryKenyans,andreservingatleastI0%of shares for workers.Additionally,they stressedtheimportanceofpublicsensitization,transparency,andprotectionofstrategic national assets.Further,residents urged the government to approachprivatization remainatthecoreofimplementation.
• 169.In contrast,some citizens expressed divergent views on the proposed legislation.A significantnumberofparticipantsvoicedconcernsthatnotallgovernmentfunctionsshould beprivatized,warningthatablanketapproachcouldunderminenationalinterests.They urgedthegovernmenttofirstinvestigatetherootcausesofparastatalfailures,whichthey andtheexclusionofordinarycitizenswhomaylacktheresourcesoraccesstoinformation duringtheprocess.

3.4.6NAKURUCOUNTY

TheCommitteesengaged theresidentsof NakuruCountyattheKenyaRedCrossHall-Nakuru. ThepublicwassensitizedonclausesoftheBillandthereafterallowedtogiveviewsontheBill Theysubmittedasfollows:

• 170.ThepublicacknowledgedandsupportedtheBill,recognizingitspotential toreducethe financial burdenonGovernmentinsustainingnon-performingstatecorporations.However, national interests,protectstrategicassets,and ensure reversibility where mandates of entitieschange.Concernswereraisedaboutpossiblejoblossessinceprovisionsinthebill donot expresslyprovideforsafeguards.Theresidentsrecommendedamendments to provideexplicitworkerprotection,involveemployeesofaffectedentitiesintheprocess, andensureadherencetotheMwongozoCodeofConduct.
• 171.Theyfurtherproposedthatpriorityinshare allocationbegiven toKenyan citizens,with transparentprocedurestopreventinsideradvantages.Additionally,thecompositionofthe PrivatizationAuthorityBoardunderClause8toincludelegalexperts,women representatives,finance andinvestment professionals,andformalinvolvementofthe Attorney-GeneralandAuditor-Generaltoenhanceoversight,legality,andaccountability.

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandFrivafizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• 172.Thepublicexpressedconcernsoverpossibleundervaluationofpublicenterprises,proposing theuseoftwoormore independentvaluers to ensurefairnessandaccuracy.Theyhad reservations on the appointmentof transaction advisorsunderClause23,recommending competitiveandtransparentproceduresfreefromconflictsof interest.Thematterofpublic disclosure was strongly emphasized,with callsfor clear communication on processes, intentions,andproceedsofprivatization,as wellasalignmertwithArticle35ofthe Constitutiononaccesstoinformation.Theresidentsnotedurgecithatconsultationsoccur beforeprivatizationdecisionsarefinalizedandprivatizationtofocusonnon-performing andaccountably.

3.4.7VIHIGACOUNTY

TheCommitteesengagedtheresidentsofVihigaCountyatPraiseCentreChurch-Mbale.The publicwassensitizedonclausesof theBill andthereafterallowedtogiveviewsontheBill.They submittedasfollows:

• 173.A section of participants supportedthe Bill,arguing that privatization could ease the resourcestocriticalsectorssuchashealthcare,education,andinfrastructure.Thcynoted that private investrs could bringefficiency,innovation,and prcfessionalism,thereby improveservicedelivryandboosteconomicgrowth.Additionally,theysuggestedthat andencouragedlistingprivatizedentitiesontheNairobiSecuritiesExchangetoallowwider citizenparticipation.
• 174.However,someresidentsexpressedreservationsnotingthatprivatization would mainly benefitafewwealthyidividualsandforeigninvestors,leavingordinaryKenyansexcluded capital flight,undermine:cconomicsovereignty,and expose citiens tohigher costsof making.Further,theresidentsnoted theBill lacked provisionsfor employee protection, theprocesstoacquireundervaluedpublicassetsattheexpenseofnationalwealth.

3.4.8SIAYACOUNTY IEBCHALL

TheCommitteesengagedtheresidentsofSiayaCountyatIEBCHall.Thepublicwassensitized onclausesoftheBill andthereafterallowedtogiveviewsontheBill.Theysubmittedasfollows:

JointReportoftheDepsriiantalCommitteeonFianceandNationalPlanningandtheSelect CommitteeonPublicDndPrivatizationontlieConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillo.36of2025)

• 175.TheresidentsinSiaya expressedtheirsupportforthebill emphasizingtheneedtosafeguard entities,warningthatwithoutsuchmeasures,thereisarealriskofnational assetsfalling underthecontrolofforeigninvestorsorasmallelite.Theynotedthat,privatizationshould tobenefitfromstateresources.TheyarguedthatempoweringordinaryKenyansthrough shareholdingwouldstrengthenpublictrustandensurethatprivatizationcontributesdirectly to national development andinclusivity.
• 176.TopromotetransparencyandaccountabilityintheimplementationoftheBill,residents recommended theuseofe-procurement systems in tenderingprocesses relatedto privatization.Theyobservedthattraditional procurementmethodsareoftenvulnerableto manipulation,corruption,andlackofopenness,whichcouldcompromisetheintegrityofthe entireprocess.Theresidentsfurthernoted thattransparentprocesseswouldrestore public confidenceandreducesuspicionsoffavoritismorelitecaptureofstateassets.Another criticalissueraisedwastheutilizationofproceedsfromprivatization.Residentsproposed thatthelawexplicitlylinktheseproceedstotheachievementofthegovernment'slong-term povertyeradication.Theycautionedthatifprivatizationfundsareusedtofinanceshorttermorunsustainableprojects,theimpactoncitizenswouldbeminimalandthelong-term benefitslost.
• 177.Theresidentsraisedconcernsaboutthewelfareofemployeesinstate-ownedentities earmarkedforprivatization.Theyarguedthatworkersoftenbearthegreatestburdenof fortheinclusionofstronglegalprovisionstoprotectjobs andguaranteefairtreatmentof employeesduringandafterprivatization.Accordingtothem,employeeprotectionwould andensureasmoothertransition.Theresidentshighlightedthepersistentriskofcorruption in theprivatizationprocess,warningthatwithoutadequatesafeguards,the exercisecould establishmentofstronganti-corruptionmechanisms,strictoversightmeasures,andpenalties forirregularconduct.

3.4.9KAKAMEGACOUNTY MAGHARIBIHALL

TheCommitteesengagedtheresidentsofKakamegaCountyatMagharibiHall.Thepublicwas sensitizedonclausesoftheBill andthereafterallowedtogiveviewsontheBill.Theysubmitted asfollows:

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• 178.TheresidentsofKakamegahadmixedbutconstructiveviews.Manyparticipantsexpressed conditional support,acknowledging that privatization could enhance efficiency, spur economic growth,and help reduce the national debt ifconducted transparently and shareholdingandcalledformandatorypublicparticipationatallstagesoftheprocess.The identityorareofstrategicimportance.
• 179.At the same tirne,aticipantsraisedstrongconcerns aboutpotential risks.They cautioned thatprivatizationcotildleadtolossofpubliccontrol,exploitationbyprivatemonopolies, anderosionofemployeerights,includingpensionsandgratuities.Theynotedthatcorruption andlackoftransparencyweremajorthreats,andurgedthegovernmenttoimplementstrict forprivatization.Ontheotherhandsomeresidentsarguedthatinsteadofprivatization,the governmentshouldfocusontacklingcorruptionandimprovingmanagementofstate-owned enterprises.Corisquently,theresidentsnotedthatprivatizationshouldonlyproceedwith firmsafeguardstoprotectworkers,ensureopenness,preventforigndominance,andretain majoritystateowrieshipinkeysectors.

3.4.I0MAKUENICOUNTY WOTEGREENPARKGARDENS

TheCommitteeengagedtheresidentsofMakueniCountyatWotegreenparkgardens.The publicwassensitizedonclausesoftheBill andthereafterallowedtogiveviewsontheBill.They submittedasfollows:

• 180.TheresidentsofMakueni CountysupportedtheBill arguingthatprivatizationwouldreduce couldgeneraterevenuefordevelopmentprojects,improveefficiency,andspureconomic andpreventpoliticalcaptureorcorruptionin theprocess.Theyfurtherstressedtheneed
• 181.However,someresiientsexpresseddepmistrustintheprivatizationprocess,fearingit couldberiddledwithcorruptionandbenefitafewattheexpenseofthewiderpublic.They arguedthatsomeparastatalsshouldbemergedorrestructuredratherthansold,andthat

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

publicassets,beingnationalproperty,shouldnotbetransferredtoprivatehands.Concerns werealsoraisedaboutthelackofsufficienttransitionmeasuresforworkerprotection,the absence ofmandatory disclosure and transparencyinvaluation,andtheriskof disenfranchising citizens unable to afford shares.Other residents called for civil society privatization,andassurances thatprivatizationwouldbedone onacase-by-casebasisrather thanthroughablanketframework.Theyalsoemphasizedtheneedtopreserveparastatals forfuturegenerations andensure equityso thatmarginalizedgroups arenotleftoutof the process.

3.4.IIMERUCOUNTY KAMUNDEHALL

TheCommitteesengagedtheresidentsofMeruCountyatKamundeHall.Thepublicwas sensitizedonclausesoftheBillandthereafterallowedtogiveviewsontheBill.Theysubmitted asfollows:

• 182.DuringthepublicparticipationforuminMeruCountyonthePrivatizationBill,2025,most performance,as private managementis better placed to deliver results.Supporters emphasized thattheprocessmustbe transparentandinclusive,particularly through mechanismssuchasInitialPublicOffers(IPOs)thatallowordinarycitizenstoparticipatein ownership.TheyfurtherproposedthatMembersofParliamentplayanactiverolein all timetoreviewtheBillandurgedthatmarginalizedgroups,PersonswithDisabilities(PWDs), pastoralists,andpeopleliving with HiVberepresentedonboards andcommittees overseeingtheprocess.
• 183.Ontheotherhand,asectionofresidentsopposedtheBill,warningthatprivatizationcould make essential services such as electricity,healthcare,water,and agricultural support unaffordableforordinarycitizens.They arguedthatmanyparastatalswereestablishedto servepublicwelfare,and shifting them to private ownership would erode their social mandate.Furthertheyfearedthatprivatizationcouldopenthedoorto"sellingKenya,with keyassets insectors suchas energy,transport,and communicationfallinginto thehandsof concernsaboutthelikelihoodofmonopolies,wherepoliticallyconnectedindividualsorfirms dominatecriticalsectors,leadingto exploitation through high pricesandpoor service quality.They cautioned thatinstead offostering efficiency,privatizationcouldentrench corruption,deepeninequality,andlockordinarycitizensoutofownership,ultimately concentratingnationalwealthandresourcesinthehandsofaprivilegedfew.

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2O25 (NationalAssemblyBillNo.36of2025)

3.4.12KILIFICOUNTY KILIFISOUTHNG-CDFOFFICES

TheCommitteesengagedtheresidentsofKilifiCountyatKilifiSouthNG-CDFOffices.The publicwassensitizedonclausesof theBill andthereafterallowedtogiveviewsontheBill.They submittedasfollows:

• 184.TheresidentsofKilifi Countyexpressed supportfor theBill,statingthattheBillintendsto acknowledgedthefficiencyofprivatizedentities,suchasSafaricom,whichoffersbetter servicethanTelkon,hegovernment-ownedentity.However,residentsraisedconcernsof limitedtimeforothciviceducationandpublicparticipation.Theyfurther sought clarifications on thecompositionofthe Privatization Authority,the beneficiariesof privatizationandtheprotectionofworkersemploymentinvariousstatecorporations earmarkedforprivatizationandworkers'rightsafterprivatization.
• 185.Someoftheresicienicscalledforproperevaluationandresearchondifferentsectorsofthe economyandtheublicentitiesinquestionbeforeanyprivatizationisconsidered.They calledforsafeguards andassurance thatstrategicnationalassetswill notbelost.Moreover, theyrequestedformorepublicengagementbeforeanyprivatizationprocessandtheneed forMembersofFrliamenttoacknowledgetheiropinionsbeforetheyvoteainddecideon thebill intheHouse.

3.4.I3MOMBASACOUNTY TONONOKASOCIALHALL

TheCommitteesengagedtheresidentsofMombasaCountyatTononokaSocial Hall.Thepublic wassensitizedonclausesoftheBillandthereafterallowedtogiveviewsontheBill.They submittedasfollows:

• 186.Theresidentsof MonbasaCountyexpressedsupportfortheBill statingthatitwillbebring betterservicedelivryforcitizensandaddressthechallengestheyhavebeenwitnessing andthebenefits andreasonsfor privatizationofstatecorporations.Theresidents acknowledgedtheimportanceofprivatizationtoensuretheydonotlosetheirstate corporationstobaddebtsandmismanagement,however,insistedtheyinsistedtheneedfor assurancethatwoikerswillnotlosetheirjobs.Theyalsoadvocatedforbroader shouldnotbeexcluciedintheshareholdingprocess.

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• 187.Manyoftheresidentsexpressedsupportforthebillbutraisedpertinentissuesrelatedto thebillincludingwhether thecommoncitizenswillbenefitfromboththeproceedsof onhowthegovernmentwillbenefitfromtheprocessandwhethertheywillhavecontrol ontheoperationsoftheprivatizedstatecorporations.Theresidentsurgedmembersof parliamenttoinvestigatenon-performinggovernmentinstitutions andproposeotherways ofensuringrecommendedperformancerather than privatization unlessnecessary,citing KenyaAirwaysasanexample.

3.4.I4UASINGISHUCOUNTY ELDORETCOUNTYHALL

TheCommitteesengaged theresicientsof UasinGishuCountyatEldoretCountyHall.Thepublic wassensitizedonclausesoftheBillandthereafterallowedtogiveviewsontheBill.They submittedasfollows:

• privatizationwouldenhanceefficiencyandeffectivenessinpublicenterprises,reducethe fiscal burdenongovernment,andcreate employmentopportunities.Theypointed to collapsedentitieswithinthecounty,suchasthePyrethrumBoardofKenya,Raymond's,and Rivatex,notingthatthesecouldhavesurvivedandcontributedpositivelytotheeconomyif theyhad beenprivatized.Residentsalso supportedthedisposalofnon-performing enterprisestoredirectresourcestomoreproductivesectors,whilerecommendingfull disclosureinall privatizationagreements.Someproposedtheinclusionof abuy-backclause 20years.Otherssuggestedleasingoutnon-performingenterprisesforafixedterminstead ofoutrightsale,enablinggovernmenttoregaincontroloncetheentitieswererevitalized.
• Residentscalledfor amendmentstoreducetheI0-yearprofessionalexperience byyouth,women,persons with disabilities,and artisans.They stressed the need for representation ofallformsofdisabilities,includingvisual andhearingimpairments,and recommendedthatboardappointmentsreflectthecountry'sethnicdiversity.Residentsalso urgedthegovernmenttoretainatleast51%ownershipinprivatizedentities,establishalist ofstrategicassetsexempted fromprivatization,andensure themandate ofprivatized institutionsisnotalteredpost-transfer.Onintegrity,theyproposedexcludingblacklisted companiesandcorruption-linkedinvestors,whilerecommendingunderthattheCabinet,in consultationwithParliament,beallowedtodetermineadditionalprivatizationmethodsin thefuture.Theyfurtheremphasizedtheneedforequitableshareallocationtoordinary

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

Kenyans,oversightofemploymentpracticesinprivatizedentitiesto safeguardworkers rights,andmeasurestopreventunjustifiedincreases inthecostofgoods andservices.

• 190.Someresidentshadreservations onprivatizationofentities.They argued thatstate corporationsshouldremainundergovernmentownership,withadequatefundingfromthe exchequer toimprove performance.In their view,the government should consider borrowingtomeetbudgetaryneedsratherthansellingpublicassets.Theycautionedthat privatizationcoulderodenationalownership,limitcitizens'accesstoaffordableservices,and deprivefuturegenerationsof thelong-termbenefitsofstate-ownedenterprises.

3.4.I5MACHAKOSCOUNTY MACHAKOSSOCIALHALL

TheCommitteesengaged theresidentsofMachakosCountyatMachakosSocial Hall.Thewas sensitizedonclausesoftheBillandthereafterallowedtogiveviewsontheBill.Theysubmitted asfollows:

• 191.During the public participation forum,most residents expressed support for the PrivatizationBill,notingthatitwouldpreventthegovernmentfromcontinuallybailingout underperformingparastatalsandallowpublicresourcestoberedirectedtodevelopment acquireshares,withminimum sharepricesmadeaffordable totheordinarymwananchi suggested ata threshold ofKshs.I,ooo.They also calledfortransparentvaluationprocesses, safeguards againstcorruptionandpoliticalinterference,andproperassessmentofthe strategicimportance ofinvestmentsbeforeprivatization.Some residentsproposedthat managersoffailedparastatalsearmarkedforprivatizationshouldbeheldaccountable,while othersstressed theneedforaclearframeworktoensureproceeds areusedtoreduce the nationaldebtburden.Protectionofenployeeswasalsohighlighted,withcallsforjobsecurity andcontinuityofbenefitsduringandafterprivatization.
• 192.ThoseopposedtotheBillraisedconcernsthatthecoremandatesofmanyparastatalshad ofservices,andexclusion ofordinarycitizens.Theyarguedthattheprocessmightfavor politicallyconnectedindividuals,causingordinaryKenyanstolosetheirstakeinpublicassets. Theyalsopointedouttheneedforthegovernmenttoclearlylistwhichparastatalsare citizens,andavoidduplicatingfunctionsalreadyprovidedforunderthePublicFinance fromdeliberatemismanagementintendedtojustifyprivatization,guaranteeingcontinuityof services after privatization,andtranslating theBillinto Kiswahili toenhance public understandingandscrutiny.

JointReportoftheDepartmentalCommitteeo:FinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

3.4.I6BUNGOMACOUNTY

REDCROSSHALL,KANDUY!

TheCommitteesengaged theresidentsofBungoma CountyatRedCrossHall,Kanduyi.The publicwassensitizedonclausesof theBillandthereafterallowedtogiveviewsontheBill.They submittedasfollows:

• 193.ManyparticipantsexpressedtheirsupportforthePrivatizationBill,2025,aslongasitwas privatizationwouldbeabetteroptionthanthecurrentleasingofsugarcompanies,which hasnotproducedthedesiredresultsandhasieftmanycommunitiesfacingeconomic uncertainty.Supporters believed that private sectorinvolvementcouldattractnew investments,bring managementexpertise,and foster innovation in struggling businesses, therebyboostingefficiencyandproductivity.However,theyinsistedthatthegovernment shouldkeepamajoritystake,withmanysuggestingatleast51%control.Thiswasseen as crucialtoprotectnationalinterests,preventforeigndominance,andensurethatKenyans benefitmostfromprivatization.
• 194.Supportersalsoemphasized thatthefundsgeneratedfromprivatizationshouldbeused wisely.Theysuggestedthatthesefundsshouldhelpmanagethegrowingnationaldebt, reduce the fiscal burden on taxpayers,and support essential services like education, healthcare,andinfrastructure.Additionally,theyinsistedthatprivatizationshouldprotect workersfrommasslayoffs.Citizenshighlightedtheneedtoretainjobs,proposingthatnew investorsshould legallyberequiredtokeepexistingemployeesandcreatemorejob opportunities.Local communities,especiallythoseinnon-technical roles,wereidentifiedas keystakeholderswhoshouldcontinuetogainfromthesebusinesses.
• 195.Conversely,opponentsoftheBillraisedstrongobjections.Theyarguedthatthegovernment couldstilleffectivelymanagepublicenterprisesifissuesofcorruptionandmismanagement enable Initial PublicOfferings(IPOs)tobeexploitedbypoliticallyconnectedindividuals and powerfulbrokers,leavingordinaryKenyansoutofownership.Theyalsowarnedaboutthe potential formasslayoffsandthelossofworkers'rights,especiallyinsectorswherepensions andgratuitieshavebeensecuredundergovernmentemployment.
• 196.Concernswerealsovoicedaboutthelackofcommunicationandawarenessregardingthe privatizationprocess.Manyparticipantsfeltthatcitizenshadnotbeenadequatelyinformed aboutwhichcompanieswereupforsale,howtheprocesswouldunfold,andwhatmeasures wouldprotectpublicinterests.Theyarguedthatthislackofinformationcouldcausemistrust andoppositionunlessitwasaddressedthroughinclusiveinformation-sharing.
• 197.ln termsofsuggested amendments,thepeople of Bungoma Countyprovided several constructiverecommendationstostrengthentheBill.Theyproposed thatsharesmeantfor institutional investorsshouldonlygotothosewithproven expertiseandsolidtrackrecords

JointReportoftheDepartmentalConimitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2O25 (NationalAssemblyBillNo.36of2025)

intherelevantindustries.Thiswouldensureeffectivemanagementanddeterspeculative fortheprivatizationprocesstofollowstructuredandtransparentmethods,similartothe successful SafaricomIfO,ratherthanrepeatingtheerrorsseenintheMumiasSugar case, whichharmedcommunities.

• specialcategoryforlocalcommunitiesaffectedbyprivatization.Forinstance,residentsnear NzoiaSugarshouldhaveaguaranteedchancetogainownershipandsharein theborefits due totheir historical andeconomic ties to the company.Furthermore,citizens recommendedthattheBillexplicitlyrequirefulldisclosureoftheentitiesdesignatedfor privatizationandensurepublicconsultationsbeforeanyfinaldecisionsaremade.There security,toavoidsocialdisruption.

3.4.I7NANDICOUNTY KIPCHOGEKEINOSTADIUM

TheCommitteeengagedtheresidentsofNandi CountyatKipchogeKeinoStadium.Thepublic wassensitizedonclausesoftheBillandthereafterallowedtogiveviewsontheBill.They submittedasfollows:

• 199.The residents expressedgeneral supportfor theBill,notingthatitwouldenhance s s CitinganexampleofNyayoTeaZoneslocatedintheCounty,theyobservedthattheyhad beenrundownwithcorruptionandneglienceleadingtofarmerspreferringtodealwith Privatefactorieswhichwereofferingbetterreturns.Theresidentssingledoutdormantand entitieswhichshouldremainundergovernmentcontrol.
• 200.Additionally,participantsproposedseveralamendmentstostrengthenit.Theyrecommended publicinterests.Theyfurthercalledforthesegregationofstrategicassets,suchastheKenya OrdnanceFactory,from non-strategiconeslike the Nyayo Tea Zones,andproposed an amendmenttoClause29toprovideastandinglistofstrategicnationalassetsthatshould beexcludedfromprivatizationaltogether.
• 201.Toprotect employees,the publicproposed adding an explicit clause to prevent unjust retrenchment,ensuring that privatization does not threaten livelihoods.Participants suggestedmodifyingthecompositionofthePrivatizationAuthorityBoardunderClause8

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningndtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizalionBill,2O25 (NationalAssemblyBillNo.36of2025)

• special interestgroupssuchasyouth,women,andpersonswithdisabilities,andprohibiting individualswhohavepreviouslymismanagedpublicentitiesfrombeingappointed. Furthermore,theyproposed thatClauseIobe amendedtorequire theChairpersonofthe Boardtoholdatleastamaster'sdegreetoensurestrongleadership.
• offeredtoKenyanindividualsorcompaniesbeforeanyforeigninvestorcanbuyin.Theyalso emphasized the needforwider publicparticipation,recommending an extended public Participantsalsoproposedtheinclusionofaprocedureforinvestigationsofthefailedpublic entities,identificationofindividuals whichhadrundown theentitiesandaccountability
• 203.ThePublicalsonotedthattherootcauseforfailureofpublicinstitutionsshouldbedealtwith whichwasmainlycorruption.This,theynotedthatthewellperformingprivateenterprises werebeingrunbyKenyanswiththeonlydifferencebeinglackofintegrityinthepublicsector.
• 204.SomeParticipantsraisedconcernsaboutthesustainabilityofPrivatizationnotingthatwith legislationshouldbedevelopedtoturnaroundthenonperformingentitiestobecomemore productiveandefficientwhichwillhavemorelong-termbenefitstotheeconomy.

3.4.18HOMABAYCOUNTY GOVERNOR'SPARK

s sensitizedonclausesoftheBillandthereafterallowedtogiveviewsontheBill.Theysubmitted asfollows:

• 205.During the publichearinginHomabay County,residents proposed that the working reducedfromtenyears.Theynoted thatthecurrentprovisionlocksoutyoungpeoplewho maynothaveaccumulatedsuchexperience,yethavetheskillsandideastocontribute youth andotherqualifiedindividualsoutsidethepublicservice.
• dominance,warningthatallowingforeignerstohoidcontrollingstakesinvitalenterprises couldundermine national interests.They furtherrecommended thatsome state-owned

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

employees'jobs,guarantee fair treatment,and ensure thatprivatizedentities continueto provideservicesandemploymentopportunitieswithinlocalcommunities.

• 207.Additionally,theresidentsunderscoredthattheprivatizationprocessmustbetransarent and firmly safeguarded against corruption,insider trading,and personal interests.Tly insisted thatpublicinterestshouldbe atthecoreofeverydecision andthatregionshosting entitiesearmarkedforprivatizationshouldbeclearlyinformedofthebenefitsexpectedito accrue to them.The residents submitted that there is need for inclusivity,urging the governmenttoensure thatPersonswithDisabilities,theelderly,andmarginalizccigroups arenotleftoutinshareallocations.Residentsalsourgedthatcitizensensitizationbecarried oncetheprivatizationprocessisimplemented.

3.4.I9LAIKIPIACOUNTY NG-CDFHALL,NANYUKI

TheCommitteesengaged theresidentsof LaikipiaCountyatNG-CDFHall,Nanyuki.Thepuilic wassensitizedonclausesoftheBillandthereafterallowedtogiveviewsontheBill.They submittedasfollows:

• 208.AsectionofresidentsinLaikipiaCounitysupportedthePrivatizationBill,notingthatmany parastatalsareloss-makingentitiesthatrelyonrepeatedgovernmentbailouts.Theyargued thatsuch bailoutsdraintaxpayers'moneyandplaceanunnecessaryburdenoncitizens. Supportersemphasizedthatprivatization would helpease thisfiscalpressure,improve efficiency,andreducewasteinthemanagementofpublicresources.Theyfurtherproposed thattheBillbeamendedtospecifythatonlyloss-makingparastatalsshouldbeprivatized, whileprofitableonesremainundergovernmentcontrol tocontinuecontributingto the economy.
• 209.However,someresidentsopposed theBil,insistingthatgovernmentassetsbelongto the peopleofKenya andnottopolitical leaders.Theyargued that the mainreason many particularlythroughappointmentsmadeonthebasisof loyaltyratherthanmerit.According toparticipants, such politically connected appointees often lack the competence torun meetinstitutionalmandates.
• 210.Theyfurtherstressedthatinsteadofpushinglawstoprivatizestate-ownedenterprises,the servingtheinterestsofpoliticalelitesrathernantheordinarymwananchi.Forthem,true

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

reformwouldinvolvereorganizinggovernancestructurestoensurestatecorporationswork efficientlyforthebenefitofthepublicratherthantransferringownershipintoprivatehands.

3.4.20KWALECOUNTY KWALECULTURALCENTRE,MATUGA

TheCommitteesengagedtheresidentsofKwaleCountyatKwaleCulturalCentre,Matuga.The publicwassensitizedonclausesof theBilland thereafterallowedtogiveviewsontheBill.They submittedasfollows:

• 211.TheresidentsofKwaleCountyexpressedtheirsupportforthebill,statingthatitintendsto theneedtoanchortheprivatizationlawintothe2oi0constitutionandreflectthecurrent howitmoves to engage the citizens.Moreover,the citizens appreciated that the National Assembly willhave morepowersin oversightingtheprivatization process.However,the residentspointedouttheneedtoincludecommunityshareswheneverapublicinstitutionis forthesocietyandtheresidentsdirectlyimpactedbytheprivatizationofpublicinstitutions.
• 212.Theresidentswereconcernedaboutvariousaspectsofthe publicparticipation process, wasnotenoughforthemtounderstand,recapitulateandgiveopinionsaboutthebill.They werealsoconcernedwithwhytheirviewsgivenduringpublicparticipation arenotconsidered bytheCommitteeoftheWholeHouseduringvotingonthebill.Theresidentsemphasized theneedforaccountabilityandtransparencyof theprivatizationprocessasnottobenefita fewindividualsbutratherthecitizens,andurgedtheprotectionofworkers'rightsaffected

3.4.2ITRANSNZOIACOUNTY KITALEMUSEUM

TheCommitteesengagedtheresidentsofTransnzoiaCountyatKitaleMuseum.Thepublicwas sensitizedonclausesoftheBillandthereafterallowedtogiveviewsontheBill.Theysubmitted asfollows:

• generateessentialrevenue,cutlossesfrompoorlyrunstate-ownedenterprises,andcreate They believedthatinvolvingtheprivate sector wouldbringefficiency,innovation,and responsibility.Theyalsoremarkedthatprivatizationwouldbemoreeffectivethanleasing,

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• whichhadnotbenefitedlocalcommunitiesinthepast.Someparticipantswerehopeful that localscouldbuysharesifthepricingwasfairandaccessible.
• 214.Atthe same time,a significant number ofparticipantsraised concerns about theBill.One criticalissuewaswhetherprivatizationwouldallowprivateownerstofireemployeesand whatprotectionswouldbesetuptoensurejobsecurity,pensions,andgratuities.Citizens alsoquestionedwhetherrevenuesfromprivatizedentitieswouldstayinKenyaorbetaken abroad,potentiallyharmingthenationaleconomy.Concernsaboutmonopolieswerealso dominateshareownership,limitingfairaccessforordinaryKenyans.
• 215.Corruptionwas a recurring theme,withattendeeshighlighting the importance of s.rong oversightandaccountabilitytoensurefairprivatizationthatbenefitsallshareholders.Ciizens demanded atransparentprocess,warningthatsecretive orpoliticallymotivateddealswould underminepublictrust.
• 216.Otherworriesincludedwhetherchangesingovernmentduringtheproposedeight-year privatizationprogramcoulddisruptorpoliticizetheprocess.Historical landissueswerealso mentioned.Citizensinsistedthatprivatizinginstitutionsrelatedtolandshouldfirstadiress disputesandprioritizelocalsorindigenoiscommunitiesinthoseareas.
• 217.Regardingsuggestionsandamendments,ticipantsproposedseveralchangestotheBill. TheyrecommendedreducingtheexteisivepowersgrantedtotheCabinetSecretaryinche percentageofownershipinprivatizedconnaniesforlocals,especiallythoselivingnear the locationsofstatecorporations.Incasesiyolvingland,priorityforownershipshouldgoto indigenouspopulations.
• 218.Toimproveinclusivity,itwassuggested thatsharesbemade affordablesoordinarycitizens, includingyouth and persons withdisabilities,couldparticipate meaningfully.Participants proposedspecificallocationsofsharesforyouthandpersonswithdisabilities,alongwih includingtheirrepresentativeson thePrivatizationBoard.Theyalsosuggesteddecentralizing theregistrationofcompanies and theNairobiSecuritiesExchange(NSE)to all 47counties, makingiteasierforpeopleatthegrassrootsleveltoinvest.
• 219.Additionally,citizensinTransNzoiashowedsuggestedthattheAgriculturalDevelopment Corporation(ADC)and theKenyaSeedCompanyshouldalsobeprivatised.Theyalsocalled forawareness campaigns to inform thepublicabout theprivatizationprocess,itsbenefits, risks,andsafeguardstoensureinformedparticipationandpreventmisinformation.
• 220.In summary,thepublicforuminTransNzoiaCountyshowcasedablendofsupportand cautiontowardthePrivatizationBill,2025.Supportersvieweditasawaytogeneraterevenue, tackle mismanagement,and create local ownershipopportunities.In contrast,opponents raised worriesaboutjob security.corruptin,monopolies,andtheexclusionofordinary citizens.The general sentiment was thprivatizationcouldsucceed ifconducted

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationctheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

transparently,inclusively,andwithcarefulmeasurestoprotectworkers,localcommunities, andnationalinterests.

3.4.22KISIICOUNTY AGRICULTURALTRAININGCOLLEGE,KISII

TheCommitteesengagedtheresidentsofKisiiCountyatAgricultural TrainingCollege,Kisii.The publicwassensitizedonclausesoftheBillandthereafterallowedtogiveviewsontheBill.They submittedasfollows:

• thePrivatizationBill,notingitspotentialtoimproveefficiencyinstate-ownedenterprisesand reducethegovernment'sfinancialburdenofsustainingloss-makinginstitutions.Theyargued thatifimplemented transparently,privatization couldattractinvestment,enhanceservice delivery,andspureconomicgrowth.However,supporterscautionedthatforthesebenefits atriskintheprocess.Theyalsoemphasizedtheneedforrobustmeasurestoeliminate corruption,insider trading,andunethicalpractices,whichcould otherwiseundermine the credibilityandeffectivenessoftheexercise.
• 222.Atthesametime,otherresidentsvoicedoppositiontotheBill,warningthatprivatizationof publicentitiesofferingessentialservicesmightreducethequalityandaccessibilityofsuch services.Theyarguedthatprivateinvestors,drivenprimarilybyprofit,wouldlikelyraisethe costof services such as healthcare,water,and electricity,making them unaffordable to ordinary citizens.According to these residents,the original mandate of state-owned theprivatesector coulddisadvantagelow-income households.Theycautionedthat criticalservices.

3.4.23ELGEYOMARAKWETCOUNTY KMTCITEN

TheCommitteesengaged theresidentsofElgeyoMarakwetCountyatKMTCIten.Thepublic wassensitizedonclausesoftheBillandthereafter allowedtogiveviewson theBill.They submitted asfollows:

• noting that itwouldreduce thefinancial burden on government,createemployment opportunities,generatefiscalspacefordevelopment,andincreasereturnsfromunderutilized efficiency,accountability,and soundmanagementofstate enterprises.Atthe same time,

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2O25 (NationalAssemblyBillNo.36of2025)

• participants cautioned that theprocess mustbetransparent,inclusive,andguided by strong safeguardstoprotectnationalinterestsandpreventabuse.
• 224.Severalrecommendationsweremadetostrengthen theBill.Citizensproposedtheinclusion livelihoodsshouldnotbejeopardized.OnthecompositionofthePrivatizationAuthority Board,theyrecommendedloweringtheprcfessionalexperiencerequirementtotwoyears andbroadeningrepresentationtoincludyouth,women,andpersonswithdisabilities.On ownership,theydemandedthatatleastO%ofsharesbereservedforKenyanstoensure citizensremaintheprimarybeneficiaries.Strategicnationalassetsandkeysectorssuch as education,water,energy,andsecuritywereidentified asessentialservicesthatshouldbe excludedfromprivatizationaltogether.
• earmarkedforprivatizationshouldundergopublicparticipation,withprioritygiventothe Marakwet.Concernswerealsoraisedatout theriskofprivatized entitiesturnininto safeguards,strongparliamentaryoversiy,andprovisions to ensurethatonlycredible jobs.

3.4.24KAJIADOCOUNTY NITA,KITENGELA

TheCommitteesengagedtheresidentsofKajiadoCountyatNiTA-Kitengela.Thepublicwas sensitizedonclausesoftheBillandthereafterallowedtogiveviewsontheBill.Theysubmitted asfollows:

• 226.The residents ofKajiadohad mixedviews concerning the bill.Those in support for privatizationstatedthattheysupport,primarilyonthegroundsthatitwouldyieldeconomic benefitsforcitizens.They arguedthatproceedsfromprivatizationshouldbeequitably distributedacrossgovernmentprojectsin different sectors to ensure national impact. notedthatprivatization couldstimulatejobcreation,enhance operationalefficiency,and strengtheninvestorconfidence.TheyviewedtheBill asaforward-lookingpolicyinstrurent toattractinvestmentintostate-ownedcompanies.
• disenfranchisement of ordinary citizens.They argued that the inefficiencies in state corporationsstemmedlargelyfrompoormanagement,whichcouldberesolvedthrough

fointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

• government intervention rather than privatization.Some participants contended that privatizationwouldbenefitonlyaselectfewattheexpenseofthewiderpopulation.
• utilizationofproceeds,andstrongerprotectionforemployees.Plenarydiscussionsechoed these concerns,stressing that public participation should be conducted before any interference,andsafeguardingnational interests.

3.4.25EMBUCOUNTY

BothCommitteesengagedtheresidentsofEmbuCountyatIFADHall.Thepublicwassensitized totheclausesoftheBillandthereafterallowedtogiveviewsontheBill.Theysubmittedas follows:

• 229.ResidentsofEmbuCountyexpressedsupportforthePrivatizationBill,thoughtheirbacking wasconditional onseveralsafeguarts.Theyproposedthatkeystrategicassetsbeexempted ensuringrepresentationofyouth,women,andpersonswithdisabilitiesinthePrivatization reasoningthatforeignownershipcouldpotentiallyinmproveefficiencyandservicedeliveryif guidedbyclearperformancetargets.
• 230.However,otherresidentswereopposedtotheBill,voicingfears thatprivatizationcould createmonopoliesandeliminatesubsidiesthatbenefitordinarycitizens.Theywarnedthat the transitionprocessmightbe chaotic,with risksofconfusion,unrest,or even conflictif communities felt sidelined in decision-making.Concerns were also raised that private accesstoessentialservices,whileemployeesinprivatizedinstitutionscouldfacejoblosses. ParticipantsfurthercriticizedleadersforpushingtheBillforwardtooquicklydespite persistent shortcomings in service delivery.The residents strongly cautioned against threatennational sovereigntyandsecurity.Theyinsistedthatsuchentitiesmustremainunder governmentcontroltosafeguardpublicinterest.

JointReportoftheDepartmentalCommitteeonFinanceendNationalPlanningandtheSeiect CommitteeonPublicDebtandPrivatizationontheConsideraticnofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

CHAPTERFOUR

4COMMITTEESOBSERVATIONS

• 231.HavingconsideredthePrivatizationBill,2025(NationalAssemblyBillNo.36of2025),and evaluatedstakeholdersubmissionsontheirproposalstotheBill,theCommitteesmadethe followingobservations-

ObjectsarrcpurposesoftheBill

• 232.TheBillseekstorepealthePrivatizationAct,2005(Cap.485B)andre-enacttheregulatory frameworkfortheprivatizationofpublicentitiesfollowingthedeclarationofthe PrivatisationAct,2023 bythe High Court forbeing unconstitutionalinNairobi ConstitutionalPetitionNo.E49lof2023OrangeDemocraticMovementPartyVs. The CabinetSecretary,National Treasury andEconomicPlanning&2 Otiiers(As ConsolidatedwithPetitionE010of2024andE025of2025.

RoleoftheNationalAssemblyinepprovalofprivatizationproposals

• 233.Whereas theBillprovidesfortheroleoftheNationalAssemblyin theapprovalof Section23(3)ofthePrivatizationAct,2005(Cap.485B)providesasfollows-
• (3)TheCabinetSecretaryshall submitareportinformofaSessional Paperonaprivatization proposalapprovedbytheCabinettotheNationalAssemblyforconsideration.
• 234.TherewasthereforeaneedtoamendtheBilltoprovidefortheapprovalof theprivatisation proposalsbytheNationalAssembly.

Reviewsandappeals

• 235.Therewasneedtodeleteclauses52,53,54,55,56,57,and58oftheBillprovidingforthe establishment,functions,composition,conductandrelatedprovisionson thePrivatization AppealsBoard.Thedeletionsareinformedbythefollowingreasons:
• (a)InOkoitivJudicial ServiceCainrnission&2others;KatibaInstitute(lnterested Party)(Petition197of2018)[2021]KEHC461(KLR),thepetitionersoughtvarious tribunalsestablishedpursuanttoarticle169(1)(d)of theConstitutionofKenya,2010.The HighCourtheldthatlocal tribunalscreatedunderarticle169(l)(d)of theConstitution aresubordinateCourtsinKenya;theappointmentandremovalofmembersofthelocal tribunalscreatedunderarticle169(1)(d)oftheConstitutionbytheExecutiveviolatesthe principleofseparationofpowers,contravenestherighttofairhearingunderarticle50of theConstitution and infringeson theindependenceoftheJudiciary;and thatthelocal

ointReportoftheDepartmentalCommitteeFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationotheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

tribunalsunder article169(1)(d)of theConstitutionmustbe transitedto theJudiciary andtheappointmentandremovaloftheirmembersbeundertakenbytheJudicialService Commission.

• thattheBoardmaynotbealignedtotheHighCourtdeclarationsinPetition197of2018 whichwasalsoupheldattheCourtofAppeal inAttorneyGeneralvOkoiti&3Others (CivilAppealE416of2021[2025]KECA309(KLR).
• violatestheprincipleofseparationofpowersandcontravenestherighttofairhearing. Further,asprovidedintheBill,theBoardwouldlackindependence.
• (d)TheproposedAppealsBoardhasfinancial implicationsandthiswouldimpose extra financialburdenintheoperationalizationof theAct.
• 236.TherewasalsoneedtoamendtoamendtheBilltoprovideforapplicationtothe PrivatizationAuthorityforreviewofitsdecisionandsubsequentavenueforappealtothe HighCourtoftheAuthority'sdecisionononehandandapplicationtotheHighCourtat thefirstinstanceforredress.

Compositionof theBoard of theAuthority

• 237.TheBillneedstobeamendedtoprovideforsimilaracademicqualificationsforthe chairpersonunder subclause(l)(a)as thoseprovidedforunder subclause(l)(d).Inboth paragraphs,lawshouldbeincludedasoneof the degrees.
• 238.Furtherclause9(3)oftheBillneededtobeamendedtoprovideforyouthsandpersons withdisabilitiestobeconsideredwhenappointingmernbersoftheBoardofthePrivatization Authority.
• 239.Therewasalsoaneedtoclearlyprovideforthequalificationsof themembersof theBoard includingsatisfactionoftherequirementsofChapterSixoftheConstitution.

Safeguards on protection of strategic national assets and national security interests

• 240.Therewasneedto amend theBill toprovidesafeguardsonstrategicnational assetsand national security interests duringthe formulation,identification andimplementation of privatizationprogrammes.

Eligibilityinaprivatization(clause32)

• 241.Therewasneedtoamendclause32oftheBill(Eligibilityinaprivatization)toprovidethe parameterswithinwhich theCabinetSecretarymaylimitorrestrictnon-Kenyans.The

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

clauseneededtobeamendedtoprovideforthefollowingmatterstobeconsideredbythe CabinetSecretary-

• (a)thestrategicnatureoftheassetorservicetobeprivatized;
• (b)national securityinterests;
• (c)economicempowermentandinclusionofKenyancitizens;
• (d)thepotentialimpactonpublicwelfare,servicedelivery,oraccess;
• (e)theriskofforeign dominanceormonopolisticcontrol;and
• s

Protectionofemployeesinprivatizedentities

• 242.TheCommitteesreceivedconcernsfromstakeholdersonfearsofjoblossesupon privatisationofpublicentities.TheCommittees observed thatclause35(g)ofthe Bill onemployeematters.Therefore,theCommitteeswereof theview thatclause35(g)of the Billwas sufficient.Inaddition,since consultationsareenvisagedwithin the privatisation processesincludingduringapprovaloftheprivatisationprogrammebytheNational Assembly,theCommitteeswereof theviewthat thiscouldbe addressedonacase-by-case basisandwithin the stages of theimplementation ofthe privatization programme. Separately,clause75oftheBillprovidesforthetransitionofstaffofthePrivatization Commissionto theproposedPrivatizationAuthority.

Billnottoexcludesaleof governmentsharesinagovernment-linked corporation

• 243.Therewasneedtoamend clause 4of theBill(Limitationof application)by deleting paragraph(c)thatprovidesfor the exclusionofthe saleofgovernmentsharesina government-linkedcorporationwithintheambitoftheBill.lf allowed,theprovisionwould negatethemainpurposeofprivatisationndthesafeguardsintheprocessesofprivatisation envisagedintheBill.

Amendmentstoclause2oftheBill(Interpretation)

• 244.Therewasneedtoamendclause2oftheBilltoprovideforthedefinitionoftheterm "divestiture"tomean"disposingofwhole orpartof the assets andlor sharesofapublicentity" Theproposedamendmentwillprovideclarityonthedefinition.
• 245.Therewasneedtodelete thedefinition"Appeals Board"since BothCommitteeshave recommendeddeletionofthesubstantiveprovisionsonit.

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2O25 (NationalAssemblyBillNo.36of2025)

Amendmentstoclause 3(objects and purpose oftheAct)

• 246.TherewasneedtoprovidefortwoadditionalobjectsoftheActasfollows:(a)prohibit restrictive orunfairtradepracticesintheprivatization process;and(b)promote ArticleI0oftheConstitution.

Co-optionofmiembers

• 247.TherewasneedtoamendtheBilltoprovideforco-optionofmemberstotheBoardto providethenecessaryexpertisetotheBoard.

Increaseofperiod ofconsideration of the privatization programme by the National Assembly

• 248.Therewasneedtoamendclause23oftheBilltoincreasetheperiodwithinwhichthe NationalAssemblyshallconsideraprivatizationprogrammefrom60daysto90days.This willprovidetheNationalAssemblyadequatetimetoeffectivelyconsidertheprivatization programme and avoid the need tohavea"deemingprovision".

Reductionofvalidityperiodofprivatizationprogramme

• 249.Therewasneedtoamendclause29oftheBilltoreducethevalidityperiodofaprivatization programme fromeightyearstofouryears.Thereduced timeframe isalignedtothe tenure ofthemembersoftheBoardofPrivatizationAuthorityandseekstoensurethatprivatisation isexpeditiouslyconcluded.Further,clause30oftheBill containsinternal safeguardswhere theCabinetSecretarycanamendaprivatizationprogramrne.

Valuations

• 250.Therewasneedtoamendclause38oftheBilltoincludethevaluationoftheparent company anditssubsidiary.Further,clause35(2)ofthe Billshouldbeamended toalso provideforaninitialvaluationreportasoneoftheitemstobeincludedintheprivatization proposal.

Amendmentofclause2l(identificationofentities fortheprogramme)

• 251.Therewasneedtoamendclause2l(2)(d)bydeleting theword"unregulated"tocure the ambiguityintheparagraph.

Amendment of clause 49 (Proceeds from the sale of a public entity's shareholding)

• 252.Therewasneedtoamendclause49oftheBill toremove therequirementofdepositing andinsteadtohavetheproceedspaidintotheConsolidatedFund.

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2025 (NationalAssemblyBiilNo.36of2025)

TheBillprovidesthelegalfrarieworkandmostconcernswouldbeaddressedin eachprivatizationprogrammeandprivatizationproposal

• 253.MostoftheconcernsraisedbythestakeholderswouldbebestdealtwithaftertheAct comesintoforceandthereisaprivatizationprogramme andprivatizationproposal duefor consideration and availedto thepublicforconsultations.TheBill generallyprovidesthelegal frameworkbutwithclearsafeguardsonpublicparticipation.

JointReportoftheDepartmentalCommitteeoiiinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationonilConsiderationofThePrivatizationBill,2025 (NationalAssemblyBillNo.36of2025)

CHAPTERFIVE

5COMMITTEESRECOMMENDATION

254.Havingconsidered thePrivatization Bill,2025(NationalAssemblyBillNo.36of2025)the Committeesrecommendsthat,theHouseapprovestheBillwithamendments.

Signed

Signed....

Hon.CPA.Kuria Kimani,CBS,MP

Hon.AbdiShurie,CBS,MP Chairperson

Chairperson

Departmental Committee on Finance andSelect Committeeon PublicDebt and National Planning Privatization

Date....

Date.. 202

JointReportoftheDepartmentalCommitteeonFinanceandNationalPlanningandtheSelect CommitteeonPublicDebtandPrivatizationontheConsiderationofThePrivatizationBill,2O25 (NationalAssemblyBillNo.36of2025)

ADOPTION OF THE REPORT OF THE DEPARTMENTAL COMMITTEE ON FINANCEANDNATIONALPLANNINGAND THE SELECTCOMMITTEEON PUBLIC DEBT AND PRIVATIZATION ON THE CONSIDERATION OF THE PRIVATIZATIONBILL,2025(NATIONALASSEMBLYBILLNO.36OF2025)

We,the undersigned Members of the Departmental Committee on Finance and National Planning and the Select Committee on PublicDebtand Privatization do 2025.

| | Name | Designation | Signature | |-----|-------------------------------------------|------------------|-------------| | 1. | Hon. Abdi Shurie,CBS M.P | Chairperson | | | 2. | Hon.CPA.Kuria Kimani,CBS,MP | Chairperson | | | 3. | Hon.Mrembo Irene Njoki,MP | Vice-Chairperson | | | 4. | Hon.(Amb.)BenjaminKipkirui Langat,CBs, MP | Vice-Chairperson | | | 5. | Hon.OmbokoMilemba,CBS,M.P | Member | | | 6. | Hon.PeterKaluma,CBS,MP | Member | | | 7. | Hon.(Dr). Irene Kasalu, M.P. | Member | | | 8. | Hon.Dr.John ArikoNamoit,MP | Member | | | 9. | Hon.Kwenya,ThukuZachary,M.P. | Member | | | 10. | Hon.AndrewAdipoOkuome,MP | Member | | | 11. | Hon.MuiruriMuthama Stanley MP | Member | | | 12. | Hon.CPA.Joseph Maero Oyula,MP | Member | |

| 13. | Hon.Abdi,AliAbdi,M.P | Member | | |-------|----------------------------------|----------|-------| | 14. | Hon.David Mwalika Mboni,MP | Member | | | 15. | Hon.Aden Daud,EBS.M.P | Member | Aaahe | | 16. | Hon.Chiforomodo Munga Mangale,MP | Member | | | 17. | Hon.Barongo,Nolfason Obadiah,MP | Member | | | 18. | Hon.(Dr).Daniel Manduku,M.P. | Member | | | 19. | Hon.Chege Njuguna,M.P | Member | | | 20. | Hon.CPA.JuliusK.Rutto,MP | Member | | | 21. | Hon.JosephMakilap,M.P. | Member | | | 22. | Hon.Umul KerSheikhKassim,MP | Member | | | 23. | Hon.Dr.ShadrackMwiti Ithinji,MP | Member | | | 24. | Hon.Paul KibichiyBiego,MP | Member | | | 25. | Hon.BettyN.Maina,MP | Member | | | 26. | Hon.Kirwa,Abraham Kipsang,M.P. | Member | | | 27. | Hon.Letipila,Dominic Eli,M.P. | Member | | | 28. | Hon.GeorgeSunkuyiaRisa,MP | Member | Memm | | 29. | Hon.(CPA).Suleka H.Harun,M.P. | Member | | | 30. | Hon.MohamedSoudMachele,MP | Member | |