High Court Blocks Government’s KICC Privatization Plan

In a major setback for the Kenya Kwanza government, the High Court has halted the sale of 11 state-owned enterprises, including the iconic Kenyatta International Convention Centre (KICC), declaring the Privatization Act of 2023 unconstitutional.

The ruling comes after Justice Chacha Mwita stated that the National Assembly had failed to adequately involve the public in the legislative process, as required by the Constitution. Only six memoranda were received during the public consultation period, which the court deemed insufficient to represent the views of Kenyans.

“The National Assembly did not meet the required thresholds for public participation,” Mwita explained. “The input gathered was neither quantitatively nor qualitatively enough to capture the people’s perspectives.”

KICC, a national monument, was among the key assets set for sale under the new law. However, the court determined that such a move violated the Monument and Heritage Act. “The decision to privatize KICC is unconstitutional, unlawful, and void,” Mwita ruled.

The Privatization Act, signed into law nearly a year ago by President William Ruto, aimed to give the Executive broad authority to sell public assets. This power was to be exercised by a Cabinet Secretary, who could begin the privatization process without needing Parliament’s approval. The law also included a clause that allowed for the sale to proceed if Parliament failed to act within 90 days, a provision the court also struck down.

The opposition, led by the Orange Democratic Movement (ODM), challenged the law in court. They argued that selling parastatals like Kenya Pipeline Limited and the Kenya Seed Company posed risks to national security and should remain under government control.

Alongside KICC, other state enterprises spared from privatization include the National Oil Corporation of Kenya, Kenya Vehicle Manufacturers Limited, and Rivatex East Africa, among others. This ruling marks a significant victory for those opposing the government’s privatization agenda.