Latest news with #KenyaPipelineCompany
Business Insider
2 days ago
- Business
- Business Insider
Kenya plans to privatise state assets to cut debt, attract capital
Kenya plans to privatise several state-owned enterprises through initial public offerings (IPOs) in a bid to attract more private sector investment. Kenya intends to privatise state-owned enterprises through IPOs to encourage private sector investment. The Kenya Pipeline Company will be listed on the Nairobi Securities Exchange by year-end. President Ruto emphasized the importance of leveraging learnings from the London Stock Exchange to strengthen domestic capital markets. Kenya plans to privatise several state-owned enterprises through initial public offerings (IPOs) in a bid to attract more private sector investment, President William Ruto said on Wednesday during a speech at the London Stock Exchange. The government will begin the process by listing the Kenya Pipeline Company on the Nairobi Securities Exchange later this year, according to Reuters. 'This will offer investors a unique opportunity to deploy capital in one of our most strategic infrastructure enterprises,' "We are committed to a structured, time-sensitive programme that identifies and prepares a robust pipeline of key government assets to be privatised through the stock exchange or improved through private sector participation," he said. President William Ruto said Kenya will continue to draw lessons from the London Stock Exchange to strengthen and revitalise the Nairobi Securities Exchange (NSE), as part of broader efforts to deepen domestic capital markets and reduce reliance on external debt. In 2023, President Ruto announced plans to privatise 35 state-owned enterprises, with an additional 100 to follow. However, in October, Kenya's High Court struck down the privatisation plans, halting the initiative. Path to financial autonomy The country has been exploring alternative funding sources since widespread protests last year forced the government to abandon proposed tax hikes totalling over 346 billion Kenyan shillings ($2.68 billion) and adopt austerity measures. Speaking separately at the Africa Debate event in London on Wednesday, Ruto cited recent disruptions, including the cancellation of USAID funding by U.S. President Donald Trump, as a catalyst for Kenya's shift toward greater financial self-reliance. ' We are working to rely on our own resources and attract private investment, rather than depending on funding we cannot control, ' he said.
Zawya
2 days ago
- Business
- Zawya
Kenya looks to privatise state assets to draw private-sector investments, says President Ruto
Kenya is planning to privatise some state assets via initial public offerings in order to bring in more private sector investment, President William Ruto said in remarks at the London Stock Exchange on Wednesday. The government plans to start with listing the Kenya Pipeline Company via an IPO on the Nairobi Securities Exchange this year, Ruto said. "We are committed to a structured, time-sensitive programme that identifies and prepares a robust pipeline of key government assets to be privatised through the stock exchange or improved through private sector participation," he said. Ruto also said that well-functioning domestic capital markets could reduce reliance on external debt. Kenya has been seeking new sources of funding since deadly nationwide protests last summer forced it to pursue austerity measures and scrap planned tax hikes worth more than 346 billion Kenyan shillings ($2.68 billion). Separately, at the Africa Debate event later on Wednesday, Ruto said that following shocks such as U.S. President Donald Trump's elimination of USAID this year, Kenya is working to rely on its own resources, and private investments, rather than "resources that we do not have any control over." He cited plans to partner with the private sector to provide hospital equipment on a fee-per-use basis and said Kenya had raised $1.3 billion by securitising assets such as roads to raise funding. "We are now going to be listing some of those bonds in the securities exchange so other investors can have a bite of the cherry," he said. ($1 = 128.9500 Kenyan shillings) (Reporting by Libby George; editing by Karin Strohecker and Joe Bavier)
Reuters
2 days ago
- Business
- Reuters
Kenya looks to privatise state assets to draw private-sector investments, says President Ruto
LONDON, July 2 (Reuters) - Kenya is planning to privatise some state assets via initial public offerings in order to bring in more private sector investment, President William Ruto said in remarks at the London Stock Exchange on Wednesday. The government plans to start with listing the Kenya Pipeline Company via an IPO on the Nairobi Securities Exchange this year, Ruto said. "We are committed to a structured, time-sensitive programme that identifies and prepares a robust pipeline of key government assets to be privatised through the stock exchange or improved through private sector participation," he said. Ruto also said that well-functioning domestic capital markets could reduce reliance on external debt. Kenya has been seeking new sources of funding since deadly nationwide protests last summer forced it to pursue austerity measures and scrap planned tax hikes worth more than 346 billion Kenyan shillings ($2.68 billion). Separately, at the Africa Debate event later on Wednesday, Ruto said that following shocks such as U.S. President Donald Trump's elimination of USAID this year, Kenya is working to rely on its own resources, and private investments, rather than "resources that we do not have any control over." He cited plans to partner with the private sector to provide hospital equipment on a fee-per-use basis and said Kenya had raised $1.3 billion by securitising assets such as roads to raise funding. "We are now going to be listing some of those bonds in the securities exchange so other investors can have a bite of the cherry," he said. ($1 = 128.9500 Kenyan shillings)
