Kiharu MP Ndindi Nyoro demands overhaul of all 288 state owned parastatals performing dismally
Treasury put to task to explain the urgency of privatizing KCC after spending Ksh 2 billion in modernisation
Kitui Central MP reads unrealistic in Kenya’s budget as no proper strategies to grow the economy
They too opposed withholding 5 percent of tax from every Sh 100 sold from farmer’s produce
Members of Parliament have tasked the National Treasury and Economic Planning to explain the quintessences surrounding the privatisation of nine marked state owned parastatals after some were recently modernized using public funds
Appearing before the National Assembly Committee on Budget and Appropriations on Monday 4th March, legislators sought to know why the Treasury listed only nine parastatals for privatization whereas there are others doing badly than the ones earmarked and instead they continue siphoning public coffers
“Why don’t you do a total overhaul in the hospitality industry instead of listing few hotels?
The purpose for their establishment was a strategic to grow the economy through making profits but now they are making losses,” Nyoro sought responses from the Principal Secretary in charge of Treasury and National Planning Dr Chris Kiptoo
Nyoro sought justifiable reasons of taxing Mama Mboga who do not have any aspirations of taking flight in order to fund Kenya Airways which do not make any profits and other parastatals which are already in their deathbed
“Privatizing them provides a chance to future prove of making some investments and if we look the private companies in the same category you find they are making profits for that matter,” A representative from the Ministry remarked
To some extend, Nyoro told Treasury and National Planning to overhaul all 288 semi autonomous government agencies and parastatals performing dismally just like KQ which has always been registering annual losses
Kitui Central MP Dr Makali Mulu who’s the Vice Chair to Committee challenged Dr Chris Kiptoo to have nice strategies in place on how they will grow the economy instead of restraining Kenya Manufactures and Private Sectors with stringent regulations and policies making them difficult to thrive in Kenyan market
“I have seen projections of Ksh 2.5T which you would like to collect from Kenyans and it’s likely to fall short by Ksh 300 billion, why would it be better to complete stalled projects instead of burdening citizens by initiating another projects,” Makali Mulu who has PhD in economics sought answers from Treasury
Tongaren lawmaker Dr John Chikati on his part demanded to know from the PS why would New Kenya Cooperatives Cremaries [KCC] be privatised after the government spent Ksh 2 billion last year towards the modernisation of all her factories across the country
According to the lawmaker, there are more than what meets the eye behind privatisation of some state agencies just after public funds were used to revamp them same as KICC which has caught legislators hawkeyed
This comes as National Treasury and Economic Planning remains adamant arguing that the listed state corporations set for privatization under the newly proposed Privatization Act 2023, will generate more state revenue and boost the country’s economy which lawmakers opposed
Embakasi Central MP Mejjadonk Githui was also perturbed by the move Treasury is taking for not giving immigration department budget to purchase passport printing machines yet Kenyans have already paid
“Don’t you think this is eroding public trust because Kenyans are paying for services which they don’t see them. Some of the departments like immigration have complained of lacking printing machines because you are holding money you don’t want to give them!,” Mejjadonk charged at PS Dr Chris Kiptoo
He also sought to know why wouldn’t the government devolve Ministry of Health because many functions are at counties highlating some instances where the national government has failed in management and operations to different health facilities
Kisumu Woman Representative Ruth Odinga also opposed the sell of State-Owned Sunset Hotel in Kisumu, where Ikolomani Bernard Shinyali backed her sentiments as well as opposing the privatisation of Kakamega Golf Hotel which county government has always demanded to control invain
The listed parastatals for privatization include the Kenya Literature Bureau (KLB), Kenya Seed Company Limited (KSC), Mwea Rice Mills Ltd (MRM), and Western Kenya Rice Mills Ltd (WKRM).
Others are Numerical Machining Complex Limited (NMC), Kenya Vehicle Manufacturers Limited and Rivatex East Africa Limited (REAL), Ngulia Safari Lodge and Voi Safari Lodges