The national government suffered a huge blow after the High Court in Nairobi determined that the Privatisation Act 2023 was unconstitutional.
While delivering his judgement on Tuesday, September 24, Justice Chacha Mwita explained that there was no meaningful public participation when the Act was being processed.
Consequently, the court ruled that the Kenyatta International Convention Centre (KICC) could not be sold given that it is a national monument.
"KICC is a national monument that needs to be protected and the decision to privatize it is unconstitutional, null and void," the judge ruled.
Read More
The ruling by the court came after civil organisations and the ODM party challenged the move by the government to list the national monument and the entities to be privatised.
"The entire Privatisation Act is unconstitutional, null and void for want of meaningful qualitative and quantitative public participation. The decision to privatise KICC is unconstitutional null and void. Section 20(5) of the Privatisation Act is unconstitutional. ODM filed the petition," ODM noted in a statement after the Tuesday ruling.
According to the government, the privatisation of KICC among other national government assets was aimed at revamping the entities that have been making losses over the years.
The privatisation of KICC also opened up opportunities for investors to alleviate the burden of the taxpayers who often have to fund the running of the state corporations.
"KICC operates in a mature and competitive market sector with other private sector players offering similar services locally and regionally," the National Treasury explained in a communique.
"Privatisation of KICC will generate additional revenue for the government and reduce the demand for exchequer support."
