The Kenyan Cabinet has given the green light to privatise six state-owned corporations, including five hotels and one bank.
Development Bank of Kenya (DBK):
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- The government plans to divest from DBK, which has fully transitioned into a deposit-taking commercial bank regulated by the Central Bank of Kenya.
- DBK started as a non-banking financial institution in 1963, focusing on promoting and developing commercially viable projects.
“The decision by our nation’s apex policy-making organ was informed by the fact the Bank had fully transitioned into a fully-fledged deposit-taking commercial bank regulated by the Central Bank of Kenya (CBK),” read part of a statement by the Cabinet.
Hotels on the Privatisation List:
- Under the Kenya Safari Lodges and Hotels Limited banner, the following facilities are set for privatisation:
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- Mombasa Beach Hotel.
- Ngulia Safari Lodge.
- Voi Safari Lodge.
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- Additional hotels to be privatised:
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- Golf Hotel.
- Sunset Hotel.
- Mt. Elgon Lodge.
- Kabarnet Hotel Limited.
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Stimulating Hospitality Industry Growth:
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- The move aims to boost Kenya’s hospitality sector by encouraging private-sector investment.
- The rebound of the tourism industry, fueled by the government’s visa-free entry policy, aligns with this privatisation strategy.
Broader Privatisation Plans
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- In November 2023, the government hinted at privatising 11 other parastatals, including the Kenya Literature Bureau, Kenyatta International Convention Centre, National Oil Corporation, Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Limited.
- Other companies on the government’s sell-off list include Kenya Pipeline Company and New Kenya Cooperative.
