Ndindi Nyoro, a member of parliament of the Kiharu constituency recently shared the government’s plan to sell government agencies and corporations that are consistently making losses. He said that the 334 government agencies, corporations, and parastatals do not make any strategic value to the government; therefore, it’s wise for the president to sell them.
While delivering his comments the member of parliament mentioned that it is not the role of the government to do business but to facilitate, enable, and regulate businesses.
As an economist, it’s safe to assume that Mr. Nyoro borrowed his perspective from the capitalistic view of economies and the role of government in free market economies. In a free market economy, the government isn’t supposed to interfere with the natural courses of free markets and trades, often referred to as laissez-faire (“to leave alone”).
As a solution, Mr. Nyoro, as in a typical free market economy, suggested that all the government agencies that do not return profits be sold to the private sector stakeholders. He added that, ultimately, the government owns 30% of every corporate business in Kenya through the corporate tax scheme.
Ndindi Nyoro says the UDA government will sell all of the 334 parastatals to private entities because the government can not keep on pumping money to non-profitable companies. He says that the role of the government is only to facilitate, enable and regulate business. pic.twitter.com/Z6R3TR5kKR
— Kulo Conrad (@ConradKulo) January 26, 2023
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