Kenya shifts from fiscal consolidation to privatization, with plans for IPOs to stimulate growth after reaching budgetary limits.
Kenya is moving from fiscal consolidation to privatization in a bid to stimulate its economy. The Treasury says budget-tightening measures have reached their limit, prompting a shift to asset sales.
Treasury Secretary John Mbadi told lawmakers that the country has implemented fiscal consolidation for the past three years. “This policy has now reached optimal levels and can’t be pushed further,” Mbadi said. He explained that an economic stimulus is now necessary to support growth.
The government plans to list part of its stake in the Kenya Pipeline Company through an initial public offering (IPO) on the Nairobi Securities Exchange. According to Mbadi, this approach will help raise capital, attract investors, and create new opportunities for the private sector.
Kenya will discuss this policy shift with the International Monetary Fund as it seeks a new program. The move signals a major change in economic strategy, prioritizing privatization over further budget cuts.
