President Ruto claims that Kenya wants to privatize state assets in order to attract private sector investment

President William Ruto stated during talks at the London Stock Exchange on Wednesday that Kenya intends to use initial public offers (IPOs) to privatize some state assets in order to attract more private sector investment.

According to Ruto, the government intends to begin this year by listing the Kenya Pipeline Company on the Nairobi Securities Exchange through an initial public offering (IPO).

“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 stated.

Additionally, Ruto stated that a healthy domestic capital market might lessen dependency on foreign debt.

Since it was forced to implement austerity measures and abandon proposed tax hikes totaling more than 346 billion Kenyan shillings ($2.68 billion) due to fatal national protests last summer, Kenya has been looking for new sources of income.

Separately, Ruto stated at the Africa Debate event later on Wednesday that Kenya is trying to rely on its own resources and private investments instead of “resources that we do not have any control over” in the wake of shocks like U.S. President Donald Trump’s decision to eliminate USAID this year.

He stated that Kenya has raised $1.3 billion by securitizing assets like highways to obtain money, and he mentioned plans to collaborate with the private sector to offer hospital equipment on a fee-per-use basis.

“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 stated.