Kenya: Policy Paper on Public Enterprise Reform
and Privatization
On July 1, 1992, the Office of the Vice-President
and the Ministry of Finance issued a policy paper on public enterprise
reform and privatization in Kenya. The paper described a comprehensive
Public Enterprise Reform Programme with the aims of:
-
enhancing the role of the private sector
in the economy;
-
reducing the demand of the Public Enterprises
on the Exchequer;
-
reducing the role and rationalizing
the operations of public enterprises;
-
improving the regulatory environment;
-
broadening the base of ownership and
enhancing capital market development.
In Kenya there are 240 commercially
oriented public enterprises with direct or indirect government ownership.
Of these the Government designated 33 as "strategic enterprises" and intends
to retain its ownership and active Board participation in them for the
time being. Of the remaining enterprises, the Parastatal Reform Programme
Committee selected 45 for the first phase of privatization while 162 are
to be processed in subsequent privatizations.
Kenya Airways was among those selected
for the first phase of privatization.