Blow To Ruto's Plan As Court Declares KICC Not For Sale, Privatisation Act 2023 Unconstitutional

• The High Court in Nairobi has ruled that the Kenyatta International Convention Centre (KICC) is not for sale
• Justice Chacha Mwita cited a lack of meaningful public participation in the Privatisation Act 2023, which sought to facilitate the sale of KICC and other state assets
• The Orange Democratic Party (ODM) argued that KICC, as part of Kenya's sovereign wealth, can only be privatized with public consent through a referendum
• The court determined that KICC is a national monument protected under Article 11(2) of the constitution

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research and reporting expertise, providing insights into Kenyan and global trends.

The High Court in Nairobi has declared that the Kenyatta International Convention Centre (KICC) is not for sale.

This comes as a blow to President William Ruto's administration's plan to privatise key state assets.

Why KICC is not for sale

Government plans to privatise KICC were anchored on the Privatisation Act 2023, which was passed by the majority of parliamentarians affiliated with the president.

On Tuesday, September 24, Justice Chacha Mwita delivered a ruling on a case filed by the Orange Democratic Party (ODM) challenging the constitutionality of the Privatisation Act 2023.

ODM, through advocate Jackson Awele, argued in court that the assets, as part of Kenya's sovereign wealth with cultural and strategic significance, can only be privatized with public consent via a referendum.

Chacha ruled that there was no meaningful public participation when the Act was being processed and, hence, it did not meet the constitutional requirements.

Additionally, the court ruled that KICC is a national monument that needs to be protected, and hence, its privatisation goes against Article 11(2) of the constitution and the Monument and Heritage Act.

"KICC is a national monument that needs to be protected and the decision to privatize it is unconstitutional, null and void," the judge ruled.

Other assets that were in line for privatisation include the Kenya Pipeline Company, Kenya Literature Bureau, and Kenya Seed Company, among others.

Why government wants to privatise KICC

As previously reported on TUKO.co.ke President William Ruto insisted on removing KICC and other assets from state books arguing that they would be more productive and reduce the financial burden they place on the government.

The president signed the Privatisation Bill 2023 into law on October 9, 2023, which gave the Executive unlimited powers to dispose of state assets without authorisation by Parliament.

Although the intention was premised on the loss-making nature of many parastatals, KICC is back to profitability.

Speaking on the financial health of KICC, which had at some point put the institution in the limelight, KICC boss James Mwaura stated that the entity was back on a profit-making streak, posting over KSh 200 million in profits, according to the latest financial results.

The move to privatise KICC was met by public backlash as many Kenyans consider the KICC to be a national symbol considering its history.

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke