Faith Masita
The High Court of Kenya has upheld the constitutionality of the Privatisation Act, 2025, dismissing all petitions that sought to prevent the Government’s privatisation agenda.
Delivered on Thursday at Milimani Law Courts, the judgment by Justice Bahati Mwamuye firmly rejects claims that the Act undermines parliamentary oversight and unlawfully shifts power to the Executive. The court found that Parliament retained ample supervisory authority over the privatisation process and that the law complies with constitutional requirements.
“The Privatisation Act, 2025, when measured against the exacting standards of the Constitution, fully satisfies those requirements,” Justice Mwamuye said in a detailed ruling, dismissing arguments that the law diluted the doctrine of separation of powers.
Green Light for Strategic Sales
The decision clears the way for the government to proceed with the planned sale of stakes in major state-owned enterprises including the Kenya Pipeline Company Ltd (KPC), New Kenya Co-operative Creameries (KCC), Kenya Seed Co., and the iconic Kenyatta International Convention Centre (KICC) under the legal framework established by the Act.
In a separate but related ruling, the court also dismissed consolidated petitions challenging the constitutionality of the privatisation process for KPC, affirming that the transaction complies with constitutional public participation and transparency standards.
Petitioners’ Arguments Rejected
Civil society groups and activists had argued that the Act improperly centered decision-making powers in the hands of the Treasury and Cabinet Secretary, effectively sidelining Parliament and threatening national sovereignty over key public assets.
The court, however, concluded that those claims lacked merit and that safeguards exist to prevent arbitrary executive action, including criteria subject to judicial review and mandatory parliamentary reporting.
Judicial Role, Not Policy Endorsement
Justice Mwamuye was careful to draw a clear line between legal review and economic policy endorsement. “This judgment should not be taken as the Court’s endorsement of privatisation as economic policy. That choice remains with the political branches,” he said, underlining the judiciary’s limited remit.
Political and Economic Stakes
The ruling represents a major victory for President William Ruto’s administration, which has made privatisation a centrepiece of its economic agenda to unlock revenue, stimulate investment and revive the Nairobi Securities Exchange. Critics have warned that rapid asset sales could erode public control over strategic infrastructure and compromise service delivery.
As a result of the High Court’s decision, the government is now empowered to advance with implementation of the Act including accelerated privatisation plans that had been bogged down by legal challenges potentially altering Kenya’s economic landscape for years to come.
Delivered on Thursday at Milimani Law Courts, the judgment by Justice Bahati Mwamuye firmly rejects claims that the Act undermines parliamentary oversight and unlawfully shifts power to the Executive. The court found that Parliament retained ample supervisory authority over the privatisation process and that the law complies with constitutional requirements.
“The Privatisation Act, 2025, when measured against the exacting standards of the Constitution, fully satisfies those requirements,” Justice Mwamuye said in a detailed ruling, dismissing arguments that the law diluted the doctrine of separation of powers.
Green Light for Strategic Sales
The decision clears the way for the government to proceed with the planned sale of stakes in major state-owned enterprises including the Kenya Pipeline Company Ltd (KPC), New Kenya Co-operative Creameries (KCC), Kenya Seed Co., and the iconic Kenyatta International Convention Centre (KICC) under the legal framework established by the Act.
In a separate but related ruling, the court also dismissed consolidated petitions challenging the constitutionality of the privatisation process for KPC, affirming that the transaction complies with constitutional public participation and transparency standards.
Petitioners’ Arguments Rejected
Civil society groups and activists had argued that the Act improperly centered decision-making powers in the hands of the Treasury and Cabinet Secretary, effectively sidelining Parliament and threatening national sovereignty over key public assets.
The court, however, concluded that those claims lacked merit and that safeguards exist to prevent arbitrary executive action, including criteria subject to judicial review and mandatory parliamentary reporting.
Judicial Role, Not Policy Endorsement
Justice Mwamuye was careful to draw a clear line between legal review and economic policy endorsement. “This judgment should not be taken as the Court’s endorsement of privatisation as economic policy. That choice remains with the political branches,” he said, underlining the judiciary’s limited remit.
Political and Economic Stakes
The ruling represents a major victory for President William Ruto’s administration, which has made privatisation a centrepiece of its economic agenda to unlock revenue, stimulate investment and revive the Nairobi Securities Exchange. Critics have warned that rapid asset sales could erode public control over strategic infrastructure and compromise service delivery.
As a result of the High Court’s decision, the government is now empowered to advance with implementation of the Act including accelerated privatisation plans that had been bogged down by legal challenges potentially altering Kenya’s economic landscape for years to come.
