Govt Selling KICC Amid Uproar
Govt Selling KICC Amid Uproar
Govt Selling KICC Amid Uproar
In the face of public outcry, the government’s plan to privatize the Kenyatta International Convention Centre (KICC) has been defended by the National Treasury, led by Cabinet Secretary Njunguna. The Treasury explained in a comprehensive privatization program that the competition from privately owned facilities and revenue collection technique influenced the decision to sell the famous facility constructed in 1973.
Treasury clarified that KICC was presently in competition with other for-profit businesses providing services on a national and worldwide level.Therefore, privatization will increase the state-owned facility’s capacity and competitiveness.
The government claims that the purpose of KICC’s opening was to facilitate trade by providing venues for conferences, exhibitions, and national and international gatherings.”KICC operates in a mature and competitive market sector with other private sector players offering similar services locally and regionally,” according to a portion of the statement.
“Privatisation of KICC will generate additional revenue for the government and reduce the demand for exchequer support,” the document stated. Some Kenyans wanted to know why the facility was being evaluated for privatization by the government when it was regarded as a national monument.
Furthermore, given that KICC has demonstrated strong financial and managerial performance in recent years, according to Treasury papers, concerned parties claimed that the sale was politically motivated. Kenya Literature Bureau (KLB), National Oil Corporation of Kenya (NOCK), Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Ltd. are among the other companies on the privatization list.
The other companies on the list were Rivatex East Africa Limited, Kenya Pipeline Company, and New Kenya Co-operative Creameries.Before the privatization scheme is completely implemented, on December 11, the administration planned a nationwide public engagement drive.
“Restructuring and privatization are intended to help the government raise more money to support fiscal consolidation initiatives and promote economic growth.”It is also geared towards reducing the demand for government resources among many demanding and competing needs,” according to a portion of the notice.
