By Enyichukwu Enemanna
Nairobi is considering to privatise some government-owned assets through initial public offerings (IPO) in order to bring in more private sector investment in the East African country looking to diversify its revenue means, Kenyan leader William Ruto said while speaking at the London Stock Exchange on Wednesday.
“We are now going to be listing some of those bonds in the securities exchange so other investors can have a bite of the cherry,” Ruto stated.
The government is planning to start with listing the Kenya Pipeline Company via an IPO on the Nairobi Securities Exchange this year, Ruto said.
“We are committed to a structured, time-sensitive programme that identifies and prepares a robust pipeline of key government assets to be privatised through the stock exchange or improved through private sector participation,” he said.
Ruto also said that well-functioning domestic capital markets could reduce over-reliance on external financial assistance.
Arising from the deadly anti-government demonstrations last year sparked by plans to increase tax, the country has been seeking new sources of funding its budget.
After the death of dozens of persons in a clash with security forces, Kenya was forced to pursue austerity measures and drop the planned tax hikes, in which it planned to raise about 346 billion Kenyan shillings ($2.68 billion).
Separately speaking at the Africa Debate event later on Wednesday, Ruto said that following shocks such as U.S. President Donald Trump’s elimination of USAID this year, his country is working to rely on its own resources and private investments, instead of “resources that we do not have any control over.”
He also cited plans to partner with the private sector to provide hospital equipment on a fee-per-use basis.
Ruto also said Kenya had raised $1.3 billion by securitising assets such as roads to raise funding.
