Cabinet approves digitization of education system and privatization of state corporations

Cabinet approves digitization of education system and privatization of state corporations

The Cabinet has today approved the digitization of the education system in what many consider giving the ministry of education and ICT a go-head to roll out school fee payment via eCitizen platform. The cabinet also approved the privatization of five hotels and the Development Bank of Kenya (DBK) as part of its plan to improve the performance. 

Digitization of the education system

The cabinet approved the digitization of the entire education system from the tertiary to university level. Although it was not indicated that school fees should be paid through eCitizen, the cabinet noted that the digitization initiative is meant to address the governance challenges within the education system that have led to parallel accounts, charging of unauthorized school fees, diversion of the exchequer releases on capitation and other fraudulent activities that undermine the integrity of the education system

Privatization of state-owned companies 

The decision was made to unlock the potential of the state-owned companies and ensure the best benefits for the public.

The Development Bank of Kenya (DBK) was approved for privatization because it has transformed into a fully-fledged commercial bank, regulated by the Central Bank of Kenya (CBK).

In addition to DBK, the Cabinet approved the sale of other non-strategic state-owned businesses. These include Kenya Safari Lodges and Hotels Limited (which includes Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge), Golf Hotel Limited, Sunset Hotel Limited, Mt. Elgon Lodge Limited, and Kabarnet Hotel Limited.

The president had earlier indicated that the government wants to private some government-owned companies in order to enhance the performance of each unit through private sector investments. This privatizing of hotels aligns with the ongoing recovery of the tourism sector, supported by the Visa-Free entry policy in Kenya. 

The government expects that this privatization move will lead to the creation of more job opportunities and business growth.

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