EAPCC privatisation begins to take shape, Kenya

EAPCC privatisation begins to take shape, Kenya
Published: 09 March 2010

The planned privatisation of East Africa Portland Cement Company (EAPCC) and electricity generating company, KenGen, began to take shape with the invitation of advisers, pointing to a scramble for the contracts among legal and financial advisory firms.

The Privatisation Commission said Friday that it’s looking for specialists to carry out valuations and offer counsel on the best way for the government to sell part of its stakes in the firms.

It’s not certain whether EAPCC and KenGen will be sold before the close of this financial year, but what is clear is the expected stiff battle for the contracts among the deal-makers looking to keep their revenue streams steady.

The government has a 52.3 per cent interest in the cement-making firm, which includes a 25.3 per cent direct shareholding and 27 per cent stake held by the State-controlled National Social Security Fund (NSSF).

The government aims to raise at least Sh6 billion by next June to help meet the Sh168 billion 2010 budget deficit this fiscal year.