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Civil Society launches legal battle over privatisation of parastatals

The case seeking to stop the transaction will be heard on April 22.

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by SHARON MWENDE

News06 April 2024 - 12:23

In Summary


  • The group reiterated that the process is illegal and amounts to a material breach of procedure.
  • This is as it has not gone through parliamentary ratification, stakeholder engagement and public participation contrary to sections 21,22 and 23 of the Privatisation Act, 2023.
Milimani law courts.

A lobby has filed a case at the High Court challenging the legality of a spate of privatisation of public parastatals.

Through lawyer Kevin Oriri, the Civil Society Reference Group, which is a coalition of more than 200 human rights, social justice and development organisations, argued that the said transaction is null and void.

It cited its arguments that the privatisation purports to arise from a defunct Gazette Notice backing to August 14, 2009 and that it proceeds as per the requirements of the repealed law.

The group, which has sued the Privatisation Authority and the Cabinet, noted that a new Privatisation Programme needs to be established for there to be a legal basis for any such transaction post the date of the enactment of the Privatisation Act, 2023.

This act, which was assented into law on October 9, 2023, and commenced on October 27, the same year, is responsible for repealing the said Gazette Notice.

The group reiterated that the process is illegal and amounts to a material breach of procedure, having not gone through parliamentary ratification, stakeholder engagement and public participation contrary to sections 21,22 and 23 of the Privatisation Act, 2023.

It urged the Milimani High Court to issue orders quashing the decision of the Cabinet contained in the despatch dated February 14, 2024, authorising the privatisation of several public entities.

The affected entities include the Development Bank of Kenya (DBK), 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.

Additionally, the Group wants the court to quash the decision of the Privatisation Programme to put up notices on its website for the acquisition of the companies.

It urged the court to prioritise its hearing and determination, otherwise, a bad precedent will be set, and the public will illegally and arbitrarily lose stakes in important assets that were built and maintained using taxpayer's money.

Justice Jairus Ngaah directed the respondents to put in their replies and set the matter for hearing on April 22, 2024


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