Kenya approves sale of State’s stake in Stanbic, NSE in IMF push
Kenya’s cabinet approved a plan to sell the state’s shareholding in six companies including Standard Bank Group’s local unit as the government works to meet requirements for its program with the International Monetary Fund.
The country will sell the shares on the Nairobi Securities Exchange “as part of the institutional reforms aimed at fostering a sustained turnaround of the economy,” the cabinet said in a statement Tuesday. The government didn’t stipulate whether it will sell its entire holding in each of the companies, or provide timelines.
It holds 1.1% of shares in Stanbic Kenya, 25.3% of East African Portland Cement, 3.36% in Nairobi Securities Exchange, 2.41% of HF Group, and 0.9% of Liberty Kenya Holding, it said.
Also, the state has 27% of East African Portland Cement through the National Social Security Fund, and 17.2% share in Eveready East Africa through Kenya Development, it said.
The East African nation entered an IMF program in 2021 that will unlock about $4 billion of financing. It agreed on several reforms to improve macroeconomic stability and restore confidence and access to international bond markets.
The government in 2023 rewrote its privatisation law to accelerate sales in 11 state-owned companies as part of reforms agreed on with the Washington-based lender. Proceeds will raise revenue for the cash-strapped government, while reducing the reliance of loss-making entities on the National Treasury.
President William Ruto’s government also plans to sell stakes in Kenya Pipeline Co., National Oil Corp. of Kenya, Kenyatta International Convention Centre and New Kenya Co-operative Creameries, all fully owned by the administration.
