The signing of the Privatisation Act 2025 by President William Ruto has sparked widespread alarm across the country, with critics warning that the new law could open the floodgates for the sale of key public assets and large tracts of public land. While the government insists the move aims to streamline management of state enterprises and boost economic efficiency, legal experts, opposition leaders, and civil society groups are sounding the alarm over what they describe as a dangerous step toward unchecked privatisation.
The new law, which was quietly assented to during a period of national mourning following the death of former Prime Minister Raila Odinga, gives the Treasury Cabinet Secretary sweeping powers to determine which state corporations should be privatised and how. This, critics argue, effectively sidelines Parliament and the public from crucial oversight processes.
Former Chief Justice David Maraga has been among the most outspoken opponents of the law, accusing the government of “bottomless greed” and saying that the legislation undermines the constitutional safeguards protecting public assets. “This law grants the Treasury near-absolute control over state properties without proper valuation, consultation, or transparency. It is a direct threat to Kenya’s economic sovereignty,” Maraga said in a statement.
Among the state entities that could be affected by the new law is the Kenya Pipeline Company (KPC), one of the country’s most valuable parastatals. Human rights activist and senator Okiya Omtatah warned that the Act’s vague provisions could allow private investors to acquire not only these corporations but also the public land on which they stand. “The Constitution prohibits the sale of public land, yet this law gives a legal loophole for such transactions to happen in secrecy,” Omtatah stated.
The Act allows the Treasury to create and implement an eight-year privatisation programme, which automatically takes effect if Parliament fails to approve or reject it within a set timeframe. Furthermore, it does not require public disclosure of the buyers in initial public offerings (IPOs), a clause that has drawn outrage from transparency advocates.
Supporters of the law, however, argue that privatisation will help improve efficiency, attract investment, and reduce the financial burden of maintaining struggling state-owned enterprises. They insist that the government will maintain strategic control of key sectors while allowing the private sector to inject much-needed capital.
Nonetheless, public concern continues to mount. Several civic organisations have announced plans to challenge the law in court, citing inadequate public participation and lack of accountability. Legal experts also point out that the law directly conflicts with Article 62 of the Kenyan Constitution, which clearly protects public land from transfer except under very limited circumstances.
The timing of the law’s signing has also stirred controversy, as many Kenyans view it as insensitive, coming just as the country mourned one of its greatest statesmen. Political analysts suggest that the move could further fuel public distrust in the administration, particularly amid ongoing debates about governance, inequality, and corruption.
Already, a High Court in Nairobi has temporarily halted aspects of the privatisation plan, particularly concerning the KPC, after petitions were filed by activists seeking to prevent what they termed “a potential daylight plunder of public property.”
As the debate intensifies, one central question remains: is Kenya’s new privatisation drive a bold step toward economic reform or a carefully veiled attempt to auction off the country’s most valuable assets?
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