High Court ruling halts sale of KICC, 10 other parastatals

The ruling puts a halt to the potential sale of significant state assets
The Orange Democratic Movement (ODM) argued that the Privatisation Act was passed without engaging the public
Privatisation of state assets could only proceed with the explicit consent of the people

The High Court has declared the Privatisation Act, 2023 unconstitutional, citing a lack of meaningful public participation in its enactment.

The ruling, delivered by Justice Chacha Mwita, puts a halt to the potential sale of significant state assets, including the Kenya International Convention Centre (KICC), Kenya Pipeline Company, Kenya Literature Bureau, and Kenya Seed Company.

Public participation concerns

The ruling followed a case filed by the Orange Democratic Movement (ODM), which argued that the Privatisation Act was passed without engaging the public, violating the constitutionally enshrined principle of public participation.

ODM’s advocate, Jackson Awele, emphasised that privatisation of state assets could only proceed with the explicit consent of the people, possibly through a referendum.

Kenya Pipeline Company - KPC ece-auto-gen

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He argued that these assets form part of the nation's sovereign wealth and have immense cultural and strategic significance.

ODM stated, “In passing the impugned Act, the National Assembly and the President failed in their duty to protect and uphold the sovereignty of the People of Kenya.”

Protection of national heritage

Justice Mwita, in his ruling, concurred with ODM's position, particularly in regard to KICC, which he described as a national monument.

He highlighted that privatising KICC would contravene Article 11(2) of the Constitution, as well as the Monuments and Heritage Act, which safeguard cultural and historical landmarks.

The judge ruled, “KICC is a national monument that needs to be protected, and the decision to privatise it is unconstitutional, null and void.”

KICC, Nairobi KICC, Nairobi Pulse Live Kenya

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Presidential assent

On 9 October 2023, President William Ruto signed into law the Privatisation Act, to accelerate the process as part of the reforms agreed upon with the IMF.

The privatisation and restructuring efforts are aligned with the government's objectives for fiscal consolidation and economic development.

The proceeds from the sales were expected to raise revenue for the cash-strapped government while reducing the reliance of loss-making entities on the National Treasury.