NAIROBI, Kenya, Aug 1 – Kenya’s National Treasury has confirmed plans to sell a 65 percent stake in the Kenya Pipeline Company (KPC) through an Initial Public Offering (IPO) at the Nairobi Securities Exchange by September 2025.
The move will leave the government with a 35 percent shareholding in the strategic energy parastatal, marking one of the boldest shifts yet under President William Ruto’s privatisation plan.
National Treasury Cabinet Secretary John Mbadi, addressing Parliament, said the state intends to quadruple its earnings from KPC post-listing. Given current dividend payouts, this would translate to at least Sh12 billion annually.
The sale, he noted, isn’t just about shedding ownership; it’s about turning public assets into high-performing economic engines.
KPC will be the first major state-owned firm to hit the NSE under the new Privatisation Act, 2023, which mandates regulatory and Cabinet-level approval before any IPO.
The 65 percent float far exceeds the NSE’s 20 percent minimum threshold for public listings, signalling the government’s intent to scale back its operational involvement in the commercial sector.
In July, President Ruto set the tone for this new chapter in Kenya’s economic governance while speaking at the London Stock Exchange:
“We have made a strategic decision to broaden Kenya’s stock market appeal by earmarking key state assets for privatization through IPOs at the NSE,” he said.
“This will offer investors a unique opportunity to deploy capital in one of our most strategic infrastructure enterprises.”
KPC, while profitable, has been underleveraged for years. Observers say this IPO could help unlock its potential, spurring innovation, efficiency, and cross-border competitiveness.
More public firms, including Kenya Literature Bureau and New KCC, are set to follow suit in what could be the country’s most aggressive privatisation wave in decades.
