President William Ruto’s plan to privatise state-owned enterprises has hit a legal snag after the Court of Appeal declined to suspend a High Court ruling that declared the Privatisation Act 2023 unconstitutional.
The appellate court dismissed an application by the government seeking to stay the earlier decision, effectively stalling efforts to transfer key public parastatals to private investors.
The ruling is a significant setback for Ruto’s administration, which had identified privatisation as a key pillar in driving economic efficiency and reducing the public wage bill.
The contested law was meant to streamline and fast-track the sale of non-strategic government entities.
With the High Court’s ruling still in effect, the Privatisation Act 2023 remains invalid, pending the outcome of a full appeal.
Legal analysts say the development underscores the judiciary’s watchdog role in ensuring legislative processes adhere to constitutional requirements.
