The cabinet has today okayed the privatization of six state enterprises, including the Development Bank of Kenya (DBK).
A dispatch released after a cabinet meeting held on Wednesday, February 14 indicated that the government is planning to divest from the DBK and other state-owned corporations.
“As part of the administration’s plan to steer the turnaround of our state corporations and other state-owned enterprises by unlocking their potential and securing the best value for the public, the cabinet considered and approved the proposed privatization of the Development Bank of Kenya (DBK),” read the dispatch.
“The decision by our nation’s apex policy-making organ was informed by the fact the bank had fully transitioned into a fully-fledged deposit-taking commercial bank regulated by the Central Bank of Kenya (CBK).”
According to the government, the measure is designed to bolster the growth of the country’s hospitality industry and individual units through private-sector investment.
The administration also stated that the move was in tandem with the ongoing recovery of the tourism industry, which was recently boosted by the government’s decision to offer global citizens visa-free entry to the country.
While justifying the decision, the Cabinet also noted the move promised to deliver increased employment and business opportunities in both the divested enterprises as well as across the entire tourism sector.
Other divestitures sanctioned by the cabinet in non-strategic commercial state-owned enterprises included Kenya Safari Lodges and Hotels Limited (incorporating Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge), Golf Hotel Limited, Sunset Hotel Limited, Mt. Elgon Lodge Limited; and Kabarnet Hotel Limited.
The move comes after the government hinted at privatizing several parastatals in the country including Kenyatta International Convention Centre (KICC), National Oil Corporation (NOC), Kenya Pipeline Company, Kenya Vehicle Manufacturers Limited and Rivatex East Africa Limited.
Others that were set for privatization included Kenya Literature Bureau (KLB), Mwea Rice Mills, Kenya Seed Company Limited and Western Kenya Rice Mills Limited.