Kenya Pipeline Company Set for Privatisation in Landmark IPO Move
The government has approved plans to privatise the Kenya Pipeline Company (KPC), paving the way for Kenyans and private investors to own shares in one of the country’s most strategic state corporations.
In a notice issued on Thursday, the Privatisation Commission confirmed that the process follows Cabinet approval and subsequent endorsement by the National Assembly on October 1, 2025. The privatisation will be executed through an Initial Public Offering (IPO) on the Nairobi Securities Exchange (NSE), in accordance with the Privatisation Act, 2005.
Commission chairperson Faisal Abass said the transaction is expected to be completed by March 31, 2026, marking one of Kenya’s largest privatisation deals in recent years.
“This privatisation presents a strategic opportunity to empower ordinary Kenyans to own a stake in a key national enterprise while enabling the government to raise funds for economic and social objectives,” said Abass.
According to the Commission, the privatisation aims to enhance operational efficiency, corporate governance, and transparency through public listing. Proceeds from the sale will go toward development projects, reducing public debt, and deepening Kenya’s capital markets.
Under the plan, the government intends to reduce its stake from 99.9% to 35%, offering 65%—valued at around Ksh120 billion— to the public and institutional investors.
KPC, incorporated in 1973 and operational since 1978, manages the transportation of petroleum products across Kenya and to regional markets, including Uganda, Rwanda, Burundi, South Sudan, northern Tanzania, and the DRC.
Treasury Cabinet Secretary John Mbadi has previously indicated that the government expects to raise Ksh149 billion from the privatisation of several state-owned firms to support the 2025/2026 national budget.
The KPC IPO is expected to be a key milestone in the government’s broader plan to revitalise state enterprises and attract long-term private capital into the energy and infrastructure sectors.