President William Ruto has pledged significant reforms for Kenya Power and other state agencies to boost operational efficiency and governance. On July 31, 2024, Ruto outlined plans to implement governance improvements in line with the Ownership Policy for Government-Owned Enterprises, which was approved by the Cabinet in November 2023. These reforms are designed to restore investor confidence and enable state enterprises to better utilize private capital.
Enhancing Governance and Efficiency
Ruto emphasized that the reforms are part of a broader initiative to fulfill manifesto pledges and enhance corporate governance and accountability. The Ownership Policy aims to align state corporations’ standards with those of publicly listed companies, ensuring improved operational efficiency and transparency within these entities.
Support for SMEs and Capital Markets
During the official listing of Linzi Sukuk on the Unquoted Securities Platform (USP) of the Nairobi Securities Exchange (NSE), Ruto highlighted the establishment of a flexible regulatory framework to support Small and Medium Enterprises (SMEs) in raising funds through the capital markets. He praised the NSE for its resilience and stable macroeconomic indicators and stressed the government’s commitment to creating a predictable business environment through appropriate policy measures.
NSE Performance and Economic Impact
Ruto noted that the NSE is currently the best-performing exchange in Africa, with a 44.43% dollar return in the first quarter. He underscored the importance of ongoing reforms to boost economic performance and develop competitive capital markets. A robust and transparent capital market is essential for providing liquidity, raising capital, and supporting the overall economic framework.
Privatisation and Market Liberalisation
The President also addressed the government’s strategy for privatising non-performing state enterprises as part of a broader economic liberalisation policy. He believes that privatisation will stimulate market activity and enhance market dynamics. Additionally, Ruto highlighted the government’s efforts to mobilize savings through various capital market instruments, including Initial Public Offers (IPOs), treasury bonds, corporate bonds, and commercial paper issuances.
Innovative Financial Products
Ruto announced the introduction of innovative financial products such as infrastructure bonds, green bonds, collective investment schemes, real estate investment trusts (REITs), asset-backed securities, exchange-traded funds, diaspora bonds, and derivatives. These products aim to diversify investment opportunities and support economic growth by attracting both local and international investors.
