The Ministry of ICT has appealed a directive to transition the national broadcaster, Kenya Broadcasting Corporation (KBC), and the Postal Corporation of Kenya (PCK) into purely commercial entities, maintaining that their primary mandate is to provide essential social services to Kenyans.
ICT Cabinet Secretary William Kabogo informed the National Assembly’s ICT committee that he will present a Cabinet memorandum to rescind the decision to shift both KBC and PCK from service-oriented bodies into commercial ventures.
The National Treasury had earmarked the two corporations for a structural overhaul, moving them from fully government-controlled state corporations to government-owned entities (GOEs). Under the proposed GOE framework, private investors would manage the operations, leaving the state with minimal ownership.
“Although the Cabinet approved the change of some entities from being State-owned parastatals to GOE’s, the KBC and PCK were not in the list. We are surprised they have been included in the entities to be converted to GOEs,” CS Kabogo said.
“I have since written a Cabinet memo asking the government to remove these two entities from the list because they are purely service-oriented. I know that they have commercial aspects, but they offer more services to Kenyans.”
30 State Corporations Set for Private Ownership
The National Treasury invited the public last week to submit views on the planned conversion of key parastatals into Government-Owned Entities (GOEs), a move that will allow the private sector to control their boards.
This restructuring relies on the Government Owned Enterprises Act, 2026, which previously enabled the partial privatization of state shareholding in cash-rich giants like Safaricom PLC and the Kenya Pipeline Company (KPC). The legislation will now see about 30 state-owned enterprises transition to largely private ownership.
Under the Act, the government seeks to transform high-performing corporations into corporate companies, including the Kenya Airports Authority (KAA), the Kenya Ports Authority (KPA), the Kenya Railways Corporation (KRC), and the Agricultural Development Corporation (ADC).
The state also targets several struggling, loss-making corporations for this corporate makeover. This list includes KBC, PCK, the Kenya Literature Bureau, the National Cereals and Produce Board, the National Housing Corporation, the National Mining Corporation, the Kenya Meat Commission, and the Kenya Post Office Savings Bank, among others.
While appearing before the committee to defend the ministry’s budget alongside principal secretaries Stephen Isabokhe (Broadcasting) and John Tonui (ICT), CS Kabogo said the transfer of KBC and PCK to the Treasury will severely impact public good, as the two entities largely offer social rather than commercial services.
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