Source: Africa Publicity
William Ruto on Tuesday said the privatisation of key state assets is helping Kenya unlock significant value, citing the initial public offering (IPO) of Kenya Pipeline Company as a major milestone in the government’s infrastructure financing strategy.
Speaking during a bell-ringing ceremony to mark the start of share trading at the Nairobi Securities Exchange, the president said the IPO had generated substantially more capital for the state than traditional dividend payments.
“Privatisation is helping us to unlock immense value from our mature public assets. The Kenya Pipeline Company IPO, for example, has enabled us to raise KSh106 billion compared to the KSh5 billion in annual dividends we have been receiving over the years,” Ruto said.
The president added that the proceeds would be used to attract private investment through the newly established National Infrastructure Fund.
“Using the National Infrastructure Fund, whose enabling law I signed on Monday, we will leverage the KSh106 billion to crowd in private capital and raise KSh1.2 trillion to finance the development of mega transformative infrastructure projects,” he said.
According to Ruto, the funding model is designed to ease fiscal pressure while enabling the government to pursue large-scale development projects.
“Through this innovative funding model, we are easing pressure on the national budget, reducing taxes, and cutting on sovereign debt. This is how we will transform Kenya in our lifetime,” he said.
Ruto presided over the ceremonial bell ringing to officially launch the trading of Kenya Pipeline Company shares on the Nairobi bourse, marking a significant step in the government’s broader privatisation agenda aimed at mobilising capital for infrastructure development.
