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The High Court of Kenya has dismissed petitions challenging the Privatisation Act, 2025, effectively green-lighting the government’s plan to sell stakes in Kenya Pipeline Company Limited (KPC).
Justice Bahati Mwamuye ruled that the Act does not undermine parliamentary authority, as argued by civil society groups, but instead provides a structured framework for executive and legislative oversight.
The decision marks a major victory for the National Treasury, which has faced repeated legal hurdles in its quest to offload public assets to plug budget deficits.
According to their filing, the group described KPC as a profitable, fully publicly owned strategic asset citing that 2024 figures showed KPC posted Ksh6.87 billion in profit while paying Ksh7 billion in dividends to the national treasury.
Challenging of Privatisation Act, 2025
The civil society groups and labour organisations had presented a consolidated petitions arguing that the Privatisation Act, 2025 and the proposed sale of state‑owned enterprises, including KPC, were unconstitutional and lacked proper public participation.
Also Read:How to Buy KPC Shares for as Little as Ksh900 Using Your Phone
The High Court ruling clears the path for the government to divest from the Kenya Pipeline Company (KPC) and other strategic state-owned enterprises.
By pursuing a public listing, the state intends to bolster operational efficiency, sharpen corporate governance, and instill greater transparency.
Furthermore, the sale proceeds are earmarked to fund critical infrastructure, curb public borrowing, and energize Kenya’s capital markets.
KPC Role
KPC has managed Kenya’s vital petroleum infrastructure since 1978, moving essential fuels domestically and regionally. Government sources indicate that a listing on the Nairobi Securities Exchange (NSE) is now slated for March 2026 following the favorable High Court decision.
Also Read:Kenya Pipeline Issues Fresh Updates Ahead of Share Application Deadline
However, the move remains a point of contention; critics previously petitioned the court, claiming that the sale lacks sufficient public engagement and threatens both workers’ rights and the nation’s energy security.
Buying of Shares
On January 19, 2026, the Government opened the Initial Public Offering (IPO) for the Kenya Pipeline Company (KPC) PLC, inviting the public to own a piece of one of the country’s most strategic and profitable national assets.
According to the KPC, Kenyans can buy a stake in the KPC for as little as Ksh.900, in a move aimed at widening public participation in the capital markets.
In a move to privatize a significant portion of the company, the National Treasury is offloading 11,812,644,350 ordinary shares, representing a 65% stake in the company.
This IPO is designed to encourage mass participation from ordinary Kenyans, marking the first major “Electronic IPO” (e-IPO) in the country’s history.
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An image of Kenya Pipeline Company holding deport and an insert of the Nairobi Securities Exchange market. Photo KPC/NSE
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