NAIROBI, July 29 – President William Ruto’s Cabinet has given the green light for the partial privatisation of Kenya Pipeline Company (KPC), marking a strategic shift toward private sector-led growth in the country’s energy infrastructure.
The decision, reached during Tuesday’s Cabinet meeting at State House, will see the government divest part of its shareholding in the profitable energy parastatal through a listing on the Nairobi Securities Exchange.
This move aims to democratise ownership by allowing ordinary Kenyans to acquire shares in one of the country’s most strategic assets.
“The Cabinet gave the green light for the reinstatement of Kenya Pipeline Company into the privatisation programme, paving the way for partial divestiture of government shares,” State House announced in a dispatch following the meeting.
KPC, which plays a central role in Kenya’s energy supply chain, has maintained consistent profitability over the years.
However, Cabinet noted that despite this strong financial performance, the company has not reached its optimum potential due to bureaucratic constraints and public sector inefficiencies that have limited its market value.
The privatisation strategy is expected to inject private capital and professional expertise into the firm, modernising its operations and positioning it as a regional logistics and energy powerhouse.
Cabinet emphasized that this approach follows successful precedents where state-controlled entities transformed into high-performing companies after privatisation.
“Safaricom, Kenya Commercial Bank, and KenGen are prime examples of formerly state-controlled entities that became high performing companies following privatisation, driving shareholder value, expanding regionally, and creating thousands of jobs,” the Cabinet statement noted.
The move represents a broader policy shift aimed at reducing the government’s direct involvement in commercial enterprises while enabling the private sector to drive growth, efficiency, and innovation.
This aligns with the administration’s strategy of focusing public resources on delivering essential services rather than commercial ventures.
The privatisation of KPC is anticipated to boost investor confidence and support the development of Kenya’s capital markets.
The inclusion of the company in the privatisation pipeline will proceed under existing laws and regulatory frameworks that guide the sale of public assets.
The decision comes as part of a wider economic restructuring agenda by the Ruto administration, which seeks to embrace private sector-led growth while maintaining operational discipline and accountability in public enterprises.
The partial sale is expected to unlock significant value for both the government and future shareholders while ensuring the company remains strategically important to Kenya’s energy security.
The timeline for the privatisation process and the percentage of shares to be offered to the public will be determined through the established regulatory frameworks governing such transactions.
