Kenya’s Privatisation Bill Sparks Unease Over Public Assets and Transparency

By Benadeta Mwaura - Reporter

President William Ruto’s assent to the Privatisation Bill, 2025 has triggered sharp debate across the country, with citizens, legal experts, and economists questioning whether the new law opens Kenya’s public assets to accountability, or to quiet sell-offs. The Bill, part of a batch of eight signed at State House last week, replaces the Privatization Act of 2005, giving the National Treasury sweeping powers to sell state-owned enterprises without

prior parliamentary approval. The government says the move will “unlock capital and efficiency,” but critics warn it may erode public ownership and transparency. “Privatisation must not become a shortcut to plunder,” said governance activist John Githongo, adding that removing Parliament’s oversight role was “a red flag for corruption in the making.”

Streamlining or Sidestepping Oversight?

Under the new framework, the Treasury becomes the central authority in identifying and approving privatisations, a shift from the previous Privatisation Commission model. Supporters argue it will speed up reforms and attract investment; detractors see it as a consolidation of power. Former Chief Justice David Maraga was among the most vocal critics, warning that the law “seeks to convert state corporations into private enterprises” and risks triggering “a sinister economic cold war against our own country.”

David Maraga's X post on the Privatisation Bill 2025

Public concern also remains high. During public participation sessions in Laikipia County, locals urged the government to slow the process and make it transparent. “We don’t oppose privatisation per se,” said Esther Wambui, a Laikipia business owner. “But corruption must be dealt with first. If government entities are sold without our involvement, it will be a problem.”

Equity, Shares, and Citizen Access

Kenyans also want inclusion in ownership of any privatized entity. David Mwalika, MP for Kitui Rural, told Parliament that public access to affordable shares was crucial:

“Some Kenyans have raised issues on how the shares are going to be sold… that shares be priced from as low as Sh10 or Sh100,” he said. But financial analysts caution that without robust oversight, small investors could be crowded out by institutional buyers. “If privatisation is designed without citizen participation, it simply replaces state monopolies with private ones,” said Dr. Wycliffe Mwangi, an economist at the University of Nairobi.

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Lessons from the Region

The push comes as several African economies revisit privatisation. Nigeria, Ghana, and Tanzania have all sold public assets in recent years, with mixed results, efficiency gains for some firms, but also job losses and public backlash.

Kenya’s experience may follow a similar path: a short-term boost to investor confidence but long-term social tension if state assets like Kenya Pipeline Company (KPC) or Kenya Power are perceived as being sold off without fairness or national benefit. Already, motorists’ associations and labour unions have voiced alarm over KPC’s possible inclusion on the list, calling it “a strategic asset that must remain under national control.”

Legal and Political Hurdles Ahead

Kenya’s courts have previously ruled against attempts to rush privatisation laws without adequate participation. Earlier this year, the Court of Appeal blocked an earlier version of the Act, citing a lack of public consultation.

That history suggests new litigation could emerge if citizens or watchdogs feel excluded again, a possibility some legal experts say could delay implementation and unsettle investors. “Major legal changes deserve daylight, not silence,” said Faith Odhiambo, president of the Law Society of Kenya. “Public resources are not private property.”

The Economic Equation

Economists agree Kenya faces mounting fiscal pressure, high debt, slow revenue growth, and the need to reduce the public wage bill. Selling underperforming parastatals might provide short-term relief, but if done hastily, it risks widening inequality and eroding public trust. “Privatisation can work if it’s done transparently and reinvests proceeds in health, education, and infrastructure,” said Dr. Mwangi. “Otherwise, it becomes an elite transfer of wealth.”

Bottom Line

As Kenya steps deeper into the privatisation era, the tension between reform and responsibility hangs heavy. The Bill could mark a new phase of economic liberalization, or a reminder that efficiency without accountability is no progress at all.