By Lauryne Akoth
President Ruto’s cabinet has approved the proposed amendments to the Public Finance Management Act. In the
Cabinet meeting held Yesterday at Statehouse Nairobi, the cabinet proposed that county budgets should include estimates of finance bills, and other bills necessary for implementing county budgets to be considered and approved simultaneously.
This effort aims to address the challenge of accumulating pending bills and financial shortcomings caused by the existing legal framework, which mandates the approval of a county finance bill three months after the appropriation bill approval.
The cabinet also approved the privatization of the Development Bank of Kenya (DBK) The cabinet’s decision was informed by the fact that DBK has fully transitioned into a fully-fledged deposit-taking commercial Bank regulated by the Central Bank of Kenya.
This action aligned with the president’s agenda to facilitate the transformation of state corporations and other government-owned enterprises by unlocking their potential and ensuring optimal value for the public.
Cabinet-approved divestitures in non-strategic commercial state-owned enterprises include the following: Kenya Safari Lodges and Hotels Limited ( incorporating Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge) Golf Hotel Limited, Sunset Hotel Limited, Mt. Elgon Lodge Limited and Kabarnet Hotel Limited.
The cabinet decided to pursue this course of action as the divestitures are anticipated to catalyze the growth of Kenya’s hospitality industry and foster the development of individual units through private sector investment.
This decision is in harmony with the ongoing recovery of the tourism sector, fueled by the visa-free entry policy in Kenya.
The objective is to generate a rise in employment and business opportunities not only within the divested enterprises but also across the entire tourism sector.