State holds off selling shares in East African Portland Cement

State holds off selling shares in East African Portland Cement
Published: 14 June 2011

The Kenyan government’s drive to sell a number of institutions in which it owns huge stakes seems to have slowed despite the financial needs it faces to finance the 2011/12 Budget.

Finance minister Uhuru Kenyatta did not bring up the issue of privatising State assets in his Budget statement last Wednesday and instead alluded to the commercialisation of State activities.

Yet through the sale of its assets, the government has previously raised much-needed revenue to plug its Budget deficits. This year’s KES1.15trn budget has a deficit of KES236.2bn.

It is estimated that Treasury can realise up to Sh100 billion from the sale of shares held in several State corporations and agencies from which the government plans to divest.

The government is also planning to offload its shares in East African Portland Cement (EAPC) and Kenya Ports Authority as well as 13 major hotels across the country.