State kick-starts process of selling Kwal, Agrochemical
1 weeks ago, 06:06
The government has started sale of companies lined up for privatisation in deals hoped to unlock billions of shillings.
The Privatisation Commission, the parastatal established in 2008 to oversee the sell-off, is seeking consultants to advise on sale of stakes in Kenya Wine Agencies Ltd (Kwal), Kenya Meat Commission (KMC) and Agrochemical and Food Corporation (ACFC).
The consultants will be expected to establish the financial health of the firms to inform valuations as well as prepare contracts including share transfer agreements.
Kwal, KMC and ACFC form the second batch of planned sell-offs lined up by the Treasury after a similar process was initiated in May targeting State-owned stakes in hospitality firms such as Hilton, InterContinental and Mountain Lodge.
“Consultants with the ongoing transaction advisory contracts with the Commission are not eligible to participate,” Commission acting executive director Janerose Omondi said in a notice.“Prospective bidders are not allowed to bid for more than one tender.”
The sales, first announced in 2011, are part of a plan to improve the State’s finances and to transfer the running of businesses to the private sector.
The commission has in recent months showed intention to expedite the process by seeking to fill the position of chief manager for transactions.
The sale initially targeted 26 companies significantly owned by the State, majority of which are debt-laden and poorly performing parastatals.
The planned sale to strategic investors is aimed at reducing their reliance on taxpayers.
It will free up cash at a time the government is struggling to mobilise cash to fund development projects such as infrastructure.
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