The government has officially announced plans to privatize the Kenya Pipeline Company (KPC) Limited following approval by the Cabinet and subsequent endorsement by the National Assembly on October 1, 2025.

In a notice issued by the Privatization Commission, Chairman Faisal Abbas confirmed that the process will be conducted through an Initial Public Offering (IPO) of shares on the Nairobi Securities Exchange (NSE), in accordance with Section 25 of the Privatization Act, 2005.

The transaction is expected to close by March 31, 2026.

Rationale Behind the Privatization

According to the Privatization Commission, the move “presents a strategic opportunity to unlock the company’s full potential while ensuring broad national benefits.”

The Commission outlined six key objectives for the privatization process.

First, it aims to help the government raise funds for the 2025/2026 budget to implement key economic and social objectives.

Additionally, it will enable ordinary Kenyans to own shares in one of the country’s most profitable and strategic enterprises, thereby promoting inclusive economic growth and enhancing transparency through stock exchange listing and regulatory oversight.

Other goals include improving operational efficiency and innovation, supporting critical development priorities, and reducing dependence on borrowing while deepening Kenya’s capital market.

The Commission also stated that the move “balances economic empowerment, national interest, and institutional modernization in a manner that will benefit both the public and the economy at large.”

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Brief Profile of Kenya Pipeline Company

Kenya Pipeline Company was incorporated on September 6, 1973, under the Companies Act (Cap 486) and began commercial operations in 1978.

Its core business is to transport refined petroleum products such as Motor Spirit Premium (MSP), Automotive Gas Oil (AGO), Jet A-1, and Illuminating Kerosene (IK).

The company plays a crucial role in ensuring a stable and efficient supply of petroleum across Kenya and the wider East and Central African region, serving countries including Uganda, Rwanda, Burundi, Northern Tanzania, Southern Sudan, and the Democratic Republic of Congo.

Currently, the Government of Kenya holds 99.9% of KPC shares through the National Treasury, with the Ministry of Energy and Petroleum owning 0.1%.

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Implementation and Oversight

The Commission emphasized that the privatization aligns with the Privatization Act, 2005, which mandates fair, transparent, and strategic divestiture of state corporations to promote growth and competitiveness.

Chairman Faisal Abbas noted that the approval marks a key milestone in the government’s privatization agenda, aimed at fostering efficiency and public participation in national enterprises.

“The approval of KPC’s privatization through an IPO ensures transparency, encourages public ownership, and supports the government’s fiscal objectives,” Abbas stated.

The Privatization Commission confirmed that the expected closing date for the transaction is March 31, 2026, marking a significant step in Kenya’s ongoing economic reform and modernization drive.

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A newsletter by KPC On Its Privatization. PHOTO/ KPC X