Court Declares KICC Not For Sale, Privatisation Act 2023 Unconstitutional
Court Declares KICC Not For Sale, Privatisation Act 2023 Unconstitutional
This comes as a blow to President William Ruto’s administration’s plan to privatize key state assets.
Government plans to privatize KICC were anchored on the Privatisation Act 2023, which was passed by the majority of parliamentarians affiliated with the president.
On Tuesday, September 24, Justice Chacha Mwita delivered a ruling on a case that was filed by the Orange Democratic Party (ODM) challenging the constitutionality of the Privatisation Act 2023.
ODM, through advocate Jackson Awele, argued in court that the assets, as part of Kenya’s sovereign wealth with cultural and strategic significance, can only be privatized with public consent via a referendum.
Chacha ruled that there was no meaningful public participation when the Act was being processed and, hence, does not meet the constitutional requirements.
Additionally, the court ruled that KICC is a national monument that needs to be protected, and hence, its privatization goes against Article 11(2) of the constitution and the Monument and Heritage Act.
“KICC is a national monument that needs to be protected and the decision to privatize it is unconstitutional, null and void,” the judge ruled.
Other assets that were in line for privatization include the Kenya Pipeline Company, Kenya Literature Burea, and Kenya Seed Company, among others.
President William Ruto championed the privatisation of state assets arguing that they would be more productive and reduce the financial burden they place on the government.
The president signed the Privatisation Bill 2023 into law on October 9, 2023, which gave the executive unlimited powers to dispose of state assets without authorization by parliament.
Although the intention was premised on the loss-making nature of many parastatals, KICC is back to profitability.
Speaking on the financial health of KICC, which had at some point put the institution in the limelight, KICC boss James Mwaura stated that the entity was back on a profit-making streak, posting over KSh 200 million in profits, according to the latest financial results.
The move to privatize KICC was met by public backlash as many Kenyans consider the KICC to be a national symbol considering its history.
Court Declares KICC Not For Sale, Privatisation Act 2023 Unconstitutional
