Frequently Asked Questions

The Privatization Authority (PA) is a body corporate established under Section 8 of the Privatization Act, 2025. It is responsible for overseeing, coordinating, and implementing the privatization of public entities in Kenya.

Privatization refers to a transaction that results in a transfer, other than to another public entity, of assets, liabilities, or shares of a public entity. This includes full or partial transfer of ownership or control to the private sector.

The Authority is managed by a Board consisting of a chairperson appointed by the President; the Principal Secretary responsible for privatization or a designated representative; the Attorney-General or a designated representative; six other persons, not being public officers, appointed by the Cabinet Secretary through a competitive process; and the Managing Director of the Authority, who serves as an ex-officio member of the Board with no voting rights.

Under Section 9 of the Privatization Act, 2025, the Authority is mandated to advise the government on all aspects of privatization, facilitate implementation of government policy, implement the Privatization Programme and specific proposals, collaborate with relevant organizations, prepare a long-term divestiture sequence plan, monitor and evaluate implementation, ensure compliance with the Act, and perform any other functions conferred by law.

Under Section 34 of the Privatization Act, public assets can be privatized through:

• Initial public offer (IPO) of shares;
• Sale of shares by public tender;
• Sale resulting from the exercise of pre-emptive rights; or
• Any other method determined by the Cabinet.

Under Section 6 of the Privatization Act, the purposes of privatization include implementing government fiscal policies and revenue-raising measures, improving infrastructure and public service delivery through private capital and expertise, enhancing Kenya's capital markets, improving efficiency and accountability of public entities, reducing conflicts between regulatory and commercial functions, and broadening ownership in the Kenyan economy.

Under Section 22 of the Privatization Act, 2025, the Cabinet Secretary for the National Treasury identifies entities and prepares the Privatization Programme, which sets out the public sector entities to be privatized.

The programme must be approved by the Cabinet, submitted to and approved by the National Assembly, with or without amendments, and published in the Kenya Gazette once approved.

Under Section 32 of the Privatization Act, 2025, any person, whether Kenyan or non-Kenyan, is eligible to participate in a privatization unless other laws restrict participation by non-Kenyans.

The Cabinet Secretary may limit participation to Kenyans only or set a minimum level of Kenyan participation based on strategic nature, national security interests, economic empowerment and inclusion, public welfare and service delivery impact, risk of foreign dominance or monopolistic control, and national development goals and policies.

Yes. Once a public entity is included in an approved Privatization Programme, it cannot dissipate its assets, incur unusual liabilities, buy assets outside the ordinary course of business without approval, disclose non-public information that could advantage a bidder, undertake new major investments or disposals without approval, or extend credit to anyone to buy its shares.

The Authority must conduct a business and assets valuation for each privatization. The valuation is performed by a qualified person appointed by the Authority.

Under Section 54 of the Privatization Act, 2025, all proceeds from the sale of direct National Government shareholding are paid directly into the Consolidated Fund.

Yes. Any person dissatisfied with the Authority's decision may apply in writing for a review within 15 days, and the Authority must decide within 15 days.

An appeal against the Authority's review decision may be filed with the High Court within 15 days of receiving the review decision.