NBK, KWAL to be sold in 4 months

April 9, 2009
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, NAIROBI, Kenya, Apr 9 – Privatisation of State-owned National Bank of Kenya and the Kenya Wines Agencies Limited could be complete in the next four to seven months.

This follows identification of two consortia led by PricewaterhouseCoopers and Standard Investment Bank that won the bids to carry out the due diligence services for this process.

“The signing of the contracts is a key milestone in the implementation of the two transactions for which we have completed procurement of consultancy services,” the Privatization Commission’s Chief Executive Officer, Solomon Kitunguu, said on Thursday.

Mr Kitunguu however noted that successful completion of the process would be hugely dependent on the findings of the due diligence reports to be presented by the two consortia.

The privatisation would also require approvals from a number of regulators including the Capital Markets Authority and the Central Bank of Kenya. 

Meanwhile, the Commission’s chairman Professor Peter Kimuyu said they had called for additional bids for consultancy services in readiness for the divestiture of five sugar companies and eleven hotels.

Mr Kimuyu said the Commission would  next week be receiving expression of interest for six more transactions from the programme approved by the Cabinet in December last year.

“These will include the isolated power stations, Consolidated Bank, the Agro-chemical and   Food Corporation, the Kenya Meat Commission, the New KCC and the Numerical Machining Complex,” he said.

Signing of these two contracts marked the first stage of the process which would involve preparation of detailed proposals for presentation to the Cabinet for the approval of these transactions.

“It’s at this stage that we will be seeking Cabinets approval for the method of privatisation work plan for the transactions and other issues outlined in the Privatisation Act of 2005,” Mr Kimuyu said.

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