The Cabinet, chaired by President William Ruto on July 29, 2025, has formally approved the sale of a portion of government-owned shares in the Kenya Pipeline Company (KPC), setting in motion plans for listing on the Nairobi Securities Exchange (NSE).
This marks a pivotal shift in public policy toward privatisation, designed to open up ownership of the energy parastatal to ordinary citizens and private investors.
Under this resolution, KPC will re-enter the government’s privatisation agenda through a partial divestment structured as an Initial Public Offering (IPO).
While the exact share percentage and timing will be guided by existing regulatory frameworks, President Ruto has indicated the IPO is targeted for September 2025, following parliamentary approval and procedural alignment.
Government statements emphasize that, despite KPC’s solid financial performance and profitability, bureaucratic constraints and inefficiencies have capped its commercial potential.
By injecting private capital and professional management, the move is expected to modernise operations and position KPC as a regional logistics and energy hub.
The NSE has welcomed the announcement, asserting that the listing could deepen capital markets, improve liquidity, and enhance Kenya’s stature as a regional investment destination.
The exchange pointed to previous successful transformations of state-owned firms Safaricom, KCB and KenGen following partial privatisation as a model for what KPC could achieve.
KPC has recently delivered strong dividend performance, disbursing Sh10.5 billion over the last twelve months, including a Sh3 billion interim payment to the Treasury in December 2024. These results underline the firm’s resilience and suitability for public investment.
Privatisation is part of a broader government strategy to divest stakes in key state entities including Kenya Literature Bureau, Rivatex East Africa, National Oil Corporation, and New Kenya Cooperative Creameries.
The goal is to reduce fiscal strain, improve operational efficiency, and redirect public resources toward service delivery.
Cabinet also approved the third phase of the Last Mile Connectivity Project, aiming to connect an additional 180,500 households and MSMEs to the national grid, alongside confirming the Olkaria VII geothermal investment expected to deliver 80.3 MW of power by 2027.
Although details on valuation and share allocation remain pending, the move is set to transform public engagement with national assets. By allowing broader participation in KPC’s ownership, the government hopes to democratise economic gains while tapping into capital markets to drive growth and regional expansion.
The decision has sparked cautious optimism among investors and reform advocates alike. They argue that the privatization of a key strategic asset like KPC could catalyse capital market development, raise governance standards in parastatal management, and reinforce Kenya’s trajectory toward private sector‑led growth.
In summary, approval by Cabinet for the sale and NSE listing of Kenya Pipeline Company shares represents a significant milestone in the country’s privatisation agenda.
With completion expected in 2025, the move could unlock shareholder value, broaden public participation in state assets, and strengthen Kenya’s position as a regional financial centre.
Written By Ian Maleve
