The Privatization Commission on Tuesday announced plans to privatize the Kenya Pipeline Company (KPC) Limited through an Initial Public Offering (IPO) at the Nairobi Securities Exchange by March 2026.
The move, approved by the Cabinet and Parliament, seeks to unlock KPC’s full potential, empower citizens through ownership, and support fiscal sustainability within Kenya’s broader economic reform agenda.
According to the notice published by the Commission, the move follows Cabinet approval of the privatization method, subsequent tabling of the requisite report before the National Assembly by the Cabinet Secretary for the National Treasury and Economic Planning, and the final parliamentary endorsement on October 1, 2025.
The Commission stated that the privatization aligns with Section 30 of the Privatization Act, 2005, which mandates open and transparent divestiture processes to enhance efficiency, stimulate growth, and attract investment in key national enterprises.
The rationale behind the privatization outlines several key objectives.
First, the government seeks to unlock KPC’s full potential “while ensuring broad national benefits.” Secondly, the sale aims to generate revenue for the 2025/2026 national budget, supporting key economic and social development initiatives.
The third goal focuses on citizen participation, as the move will “empower ordinary Kenyans to own a stake in one of the country’s profitable and strategic enterprises.”
This is expected to enhance inclusivity in wealth creation while fostering accountability and transparency within corporate governance frameworks.
The Commission also explained the importance of improving operational efficiency and innovation, reducing reliance on borrowing, and aligning the company’s financial and governance priorities with national development goals.
Further, the sale will “balance economic empowerment, national interest, and institutional modernization in a manner that benefits both society and the economy at large.”
Founded in September 1973 under the Companies Act (Cap 486), KPC began commercial operations in 1978 with the commissioning of the Mombasa–Nairobi pipeline for refined petroleum products.
Over the decades, it has expanded to include key pipeline extensions serving major urban and regional markets, including Kisumu, Eldoret, Nakuru, and parts of the East African region such as Uganda, Rwanda, Burundi, Northern Tanzania, and the Democratic Republic of Congo.
KPC currently operates five main depots and a modern marine terminal and is fully owned by the Government of Kenya through the Ministry of Energy and Petroleum, with a 99.9% shareholding.
The notice emphasized that the Privatization Commission, in collaboration with the National Treasury, will oversee the IPO process to ensure compliance with all governance and transparency standards.
The initiative also aims to attract long-term investors capable of supporting KPC’s modernization, infrastructure expansion, and regional integration agenda.