MPs Approve Kenya Pipeline Privatization Plan

The National Assembly has approved a controversial policy framework paving the way for the privatization of the Kenya Pipeline Company (KPC) Limited, but attached a series of stringent resolutions aimed at protecting public interest, employees, and national energy security.

Lawmakers on Wednesday adopted Sessional Paper No. 2 of 2025 following a joint report from the Energy Committee and the Public Debt and Privatization Committee.

The paper declares KPC, one of Kenya’s most strategic state corporations, suitable for privatization, while requiring government to retain at least 35 percent ownership.

The move clears the path for a potential initial public offering projected to raise as much as KSh100 billion.

However, MPs voiced concerns over transparency and accountability, directing the Privatization Commission to publish a citizen-friendly valuation report and disclose all liabilities, including lawsuits worth KSh5.75 billion and pending compensation claims of KSh3.8 billion linked to pipeline operations in Makueni.

They also flagged previous losses, including KSh400 million from the stalled Mzima pipeline project, insisting that such risks must be factored into the valuation.

The resolutions further bar any single entity from amassing excessive shares, in order to prevent monopolistic control of the petroleum transport sector. “We will not allow privatization to hand over strategic national infrastructure to cartels or foreign interests,” warned one committee member.

In a bid to protect workers, MPs directed that KPC employees be included in an Employee Share Ownership Plan, while also requiring transparent recruitment of transaction advisers, whose current KSh100 million fee must be approved by the Treasury. The Office of the Auditor General has been tasked with auditing the entire process within six months of completion.

The House also demanded that a portion of proceeds be directed to development projects and liability management rather than recurrent expenditure.