The privatization of state corporations, stirring mixed reactions online, has a few interesting things to know.

For decades, these parastatals were seen as the pillars of national development, powering homes, running transport systems, processing agricultural produce, and employing thousands.

But today, the story looks different. Many of them are in deep financial trouble, collectively owing the government and lenders over KSh 1.19 trillion. Eleven of the largest alone owe more than KSh 730 billion.

The key players are Kenya’s state-owned corporations, among them Kenya Power, Kenya Railways, KenGen, Kenya Ports Authority, and various development boards.

Privatization is being sold as a solution, one that could: Inject private capital and innovation, and reduce inefficiencies. This move will ease pressure on taxpayers, and create room for better service delivery.

Kenya’s Privatization Act and Public Finance Management laws set guidelines for how public assets can be sold or restructured. Privatization, if done right, can be a tool for progress.