President William Ruto has announced that the Kenya Pipeline Company (KPC) will be listed on the Nairobi Securities Exchange (NSE) through an initial public offering (IPO) later this year, marking a major step in the government’s renewed push for privatization and market liberalization.
Speaking during the London Stock Exchange market opening ceremony on Wednesday, where he is on an official visit, President Ruto said the move is part of his administration’s strategy to open up key state-owned enterprises to both local and foreign investors.
“We are committed to a structured, time-sensitive programme that identifies and prepares a robust pipeline of key government assets to be privatised through the stock exchange or improved through private sector participation,” Ruto said. “As part of this initiative, we plan to list the Kenya Pipeline Company through an IPO in 2025, offering investors a unique opportunity to deploy capital in one of Kenya’s most strategic infrastructure enterprises.”
The planned listing follows earlier hints from Treasury Cabinet Secretary John Mbadi, who in February revealed the government was considering the IPO after KPC remitted a second dividend cheque totaling Ksh.10.5 billion to the National Treasury for 2024.
Mbadi noted at the time that KPC stood to benefit significantly from public listing, including enhanced capital mobilisation for its regional expansion and diversification into the liquefied petroleum gas (LPG) market. “Kenyans will have a chance to own a piece of KPC,” he added, citing Safaricom and KenGen as examples of success stories from the bourse.
Once listed, KPC would join other state-owned firms on the NSE such as KenGen, Kenya Power, and Kenya Re-Insurance Corporation. The government currently holds significant stakes in these companies, which have benefited from increased transparency, access to capital, and broader investor engagement.
As part of its growth plan, KPC is also exploring the creation of a petroleum trading hub in Mombasa and aims to integrate the Kenya Petroleum Refineries into its operations, positioning itself as a key player in regional fuel logistics and trade.
Written By Rodney Mbua
