The government will execute a substantial fire sale of state-owned companies, according to Treasury Cabinet Secretary John Mbadi, who announced this development as the government seeks to acquire funds through state asset liquidation. The newly established Kenya Infrastructure Fund (KIF) needs to obtain Sh150 billion in “seed capital” through this plan, which opponents describe as the national economy’s ultimate “pawn shop” strategy.
The current situation has advanced beyond a gradual process of privatization because the country now faces imminent danger from losing its most significant assets. The government uses this fiscal strategy to achieve its goals because it generates revenue through asset sales, which reduce operational capacity for essential services. The traditional tax-and-borrow model has reached its final destination according to Mbadi because the government must now sell its valuable assets to international buyers.
A critical funding void has created an urgent need for this sell-off. The KIF exists as the primary engine for Kenya’s future development, yet it remains completely unproductive because it lacks any operational resources. The Treasury intends to sell parastatals that served as essential national assets because private investors currently show interest in purchasing these entities despite their worries about Kenya’s escalating debt situation.
Economists alert that the “everything must go” method will result in the government permanently losing control over vital industries. Yet state asset liquidation stands as the easiest option for the government, which faces pressure from both the public, who pay taxes, and international lenders, who require progress.
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