By Michelle Ndaga
The High Court has issued a temporary order halting the government’s plan to privatize the Kenya Pipeline Company (KPC), following a petition filed by the Consumer Federation of Kenya (COFEK). Justice Bahati Mwamuye delivered the ruling on Friday, August 15, 2025, effectively suspending any sale, transfer, or allocation of KPC shares until the matter is heard and determined.
The government’s privatization plan, approved by the Cabinet on July 29, 2025, aims to raise approximately KSh 100 billion through the sale of a 65% stake in KPC via an Initial Public Offering (IPO) at the Nairobi Securities Exchange. The move is part of a broader policy to reduce the government’s role in business and encourage private sector-led growth, efficiency, and innovation.
COFEK’s petition challenges the planned sale, raising concerns over procedural fairness and potential risks to public service delivery. The court has set the matter for hearing on September 5, 2025, and directed COFEK to serve the respondents and interested parties with the application immediately, filing an affidavit of service by the end of Friday, August 15. The respondents are required to file and serve their responses by August 22, 2025, with any rejoinder from COFEK due by August 29, 2025.
KPC, a strategic state corporation under the Ministry of Energy and Petroleum, plays a central role in the transportation and storage of petroleum products across Kenya. The government’s proposed privatization is seen as a significant shift in the management of key state-owned enterprises, aiming to unlock value and improve service delivery.
The court’s decision has sparked discussions among stakeholders, with some supporting the move as a necessary step towards modernization, while others express concerns over the potential loss of public control over critical infrastructure. As the legal proceedings unfold, the future of KPC’s privatization remains uncertain.
