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Court Rules That Planned Sale Of KICC Is Illegal

Court Rules That Planned Sale Of KICC Is Illegal
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The court argues that KICC is a national monument and that its proposed sale violates constitutional and cultural rights.

The High Court of Kenya on Tuesday, September 24 declared the Privatisation Act 2023 unconstitutional in its entirety.

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The court ruled on a petition filed by the Katiba Institute and Orange Democratic Movement (ODM) Party and deemed the sale of Kenyatta International Convention Center (KICC) as unconstitutional null and void.

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The court argues that KICC is a national monument and that its proposed sale violates constitutional and cultural rights.

“The entire Privatisation Act is unconstitutional, null and void for want of meaningful qualitative and quantitative public participation,” reads part of the ruling.

The Milimani Law Courts in Nairobi. /FILE

“The Constitution is the supreme law, and the public must be involved in public participation. The National Assembly does not do the public a favour by inviting them to participate.”

Justice Chacha Mwita determined that the Act cannot be allowed to operate as no meaningful public participation took place before its enactment.

Mwita agreed with submissions made by ODM that filed the case in court saying the public was not allowed to give its views regarding the Act which made it easier to sell state enterprises to private companies.

ODM had argued in late 2023 that the plans by President Ruto’s government to privatise the parastatals had concerns as they were the state’s assets financed by the public.

Among the companies that were targeted for sale by the government include Kenya Literature Bureau (KLB), National Oil Corporation (NOC), Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Limited.

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The Treasury, led by former Cabinet Secretary (CS) Njuguna Ndung’u, also listed Kenya Pipeline Company, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, and Numerical Machining Complex as companies up for sale.

However, the government through Cooperatives Cabinet Secretary Simon Chelugui retracted earlier plans to sell the New Kenya Cooperative Creameries (KCC) as a parastatal.

KICC was one of 11 parastatals lined up for sale by the government, with it and the KLB to be incorporated into a limited company.

At the time, the National Treasury explained that privatisation would make it competitive and reduce its reliance on the government for funding through the exchequer.

CS Alfred Mutua, now at Labour, on February 8, 2024, disclosed that KICC made an astounding Ksh1.07 billion in revenue between July and December 2023.

Aerial view of the Kenyatta International Convention Centre (KICC) tower. /AFRICASASA.COM

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