President William Ruto has announced an ambitious plan to raise Ksh5 trillion within one year through the divestiture of shares held in state-owned enterprises, a strategy he says will fund development projects and support the national budget without increasing borrowing.
Speaking on Friday during a meeting with graduate interns under the Affordable Housing Programme at State House, Nairobi, Ruto emphasized that the government had already started the process and remained confident of achieving the target.
“We have started the process of raising the money to do development. I said Ksh5 trillion; we have the means to raise it by next year. This is not about politics; it is about transforming Kenya,” he said.
The divestiture includes stakes in key parastatals, notably the Kenya Pipeline Company (KPC), whose initial public offering (IPO) was recently unveiled at the Nairobi Securities Exchange (NSE).
The IPO is the largest ever in Kenya and the first fully electronic public offering, with the government offering 65% of KPC’s shares at Ksh9 each to both local and international investors.
Ruto appeared to target politicians opposing the move, accusing them of politicizing the matter despite previously agreeing that privatisation and diversification of state-owned shares were sound strategies.
“I want to ask some politicians who, the other day, all agreed that diversification of shares and privatisation is a prudent way of raising resources, but are now politicising the matter,” he said.
The President also defended the transparency of the process, highlighting the oversight of the Capital Markets Authority (CMA) and the public trading system at the NSE.
“Such transactions are handled through the Capital Markets Authority, and shares are traded publicly at the NSE. These are not decisions made by committees or behind closed doors,” he stated.
Despite Ruto’s optimism, Controller of Budget Margaret Nyakang’o has expressed skepticism about the government’s so-called “Singapore dream” for Kenya.
She cautioned that the country must first address poverty, low wages, and household vulnerability before it can emulate Singapore’s rapid development.
Nyakang’o also highlighted the risks of continued reliance on external financing, particularly from the IMF, which she said could limit Kenya’s ability to implement reforms based on local priorities.
As the debate continues, all eyes are on the government to see whether the ambitious Ksh5 trillion target can indeed be met within the year and what impact it will have on Kenya’s broader economic transformation.
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