President William Ruto’s administration has embarked on a transformative path by announcing the decision to divest shares in six prominent state agencies, marking a strategic shift in reshaping governmental assets.

This bold move, disclosed in a Cabinet announcement on Tuesday, involves selling 25.3 percent of government shares and 27 percent held by the National Social Security Fund (NSSF) in East African Portland Cement Limited, as well as substantial stakes in five other entities.

Highlighting the broader objectives behind the divestiture, President Ruto emphasized, “The divestiture in the six companies, through the sale of shares at the Nairobi Securities Exchange, will optimize the contributions of these investments in the realization of our national development aspirations.” This strategic undertaking aims to streamline operations, revitalize the economy, and enhance governance within state corporations.

The government’s comprehensive plan includes shutting down 25 state-owned firms and transitioning an additional 25 to private-sector management.

President Ruto’s directive to curtail wasteful expenditure and alleviate financial burdens on the exchequer underscores a resolute commitment to fiscal prudence and improved operational efficiency within the public sector.

The proposed financial realignment is poised to not only enhance government revenue streams but also foster greater accountability and sustainability in state-owned enterprises.