The High Court in Nairobi has issued an order stopping the government from proceeding with the sale of shares in the Kenya Pipeline Company. This decision follows a petition filed to challenge the recent move by the National Treasury to privatise the state corporation.

The conservatory order now puts the process on hold until the court fully hears and determines the petition.

In a ruling delivered on Friday, Justice Bahati Mwamuye directed that the National Treasury must not offer, allocate, transfer, dispose of, or in any way deal with any shares of Kenya Pipeline Company for now.

This follows a notice of motion filed on August 14, which the court is yet to consider in full.

"Pending the inter partes hearing and determination of the applicant's notice of motion dated 14/08/2025, a conservatory order be and is hereby issued restraining the Respondents from offering for sale any shares of the Kenya Pipeline Company," the court stated.

Following this decision, the court ordered the petitioners to serve the application to the respondents and interested parties, and gave them a strict timeline to file their responses.

According to Justice Mwamuye, all parties named in the matter must file their responses by August 22, 2025.

"The respondents and the interested parties shall enter appearance and file and serve their respective responses to both the application and the petition; and they shall do so by close of business 22/08/2025," the judge ruled.

The petitioner will also be allowed to file a rejoinder, if necessary, by the end of August 29.

This court intervention comes just two weeks after the Cabinet approved plans to sell off the Kenya Pipeline Company. In a dispatch dated July 26, the Cabinet said that the sale would allow the private sector to take the lead in enhancing the company’s performance.

“The decision reflects the government’s policy shift toward reducing its role in doing business and instead enabling the private sector and industry experts to drive growth, efficiency, and innovation,” the dispatch read.

However, the move was met with resistance, particularly from within the company. A section of KPC employees raised concerns about job security and feared the impact of privatisation on their future.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi, in response, sought to reassure the workers by saying that no jobs would be lost as a result of the planned sale. He added that staff welfare would be protected by the law.

“We do not foresee any job losses or any restructuring to the current job structures at KPC,” Wandayi said.

As the legal process unfolds, the government’s plans to hand over the company to private hands now remain suspended, pending a final decision by the High Court.