NAIROBI, Kenya, Apr 23 — The National Treasury has revoked the classification of Kenya Pipeline Company (KPC) as a State-Owned Enterprise (SOE), marking a major shift in the firm’s governance structure following its privatisation.
The decision, published in a special issue of the Kenya Gazette dated April 22, 2026, follows the government’s sale of a 65 per cent stake in the company through an Initial Public Offer (IPO), leaving it with a minority holding of 35 per cent.
The shares were listed on the Nairobi Securities Exchange Main Investment Market Segment on March 10, 2026, effectively transitioning KPC into a publicly traded entity with reduced state control.
“In exercise of the powers conferred by Section 4(1) of the Public Finance Management Act, the Cabinet Secretary for the National Treasury revokes the declaration of Kenya Pipeline Company as a National Government Entity,” the notice reads.
The revocation applies to KPC’s earlier designation under Schedule II of the Declaration of National Government Entities (State Organs) contained in Legal Notice No. 33 of 2015.
The move formally removes KPC from the ambit of state corporations, meaning it will no longer be subject to the stringent oversight and reporting frameworks governing national government entities under the Public Finance Management Act.
KPC’s privatisation was undertaken in line with the Privatization Act, 2025, as well as the Capital Markets Act and regulations governing public offers and listings, making it one of the most significant state asset disposals in recent years.
The government’s exit from majority ownership culminated in early 2026 after years of policy signalling aimed at divesting from commercially viable state firms to ease fiscal pressure and deepen capital markets.
The IPO, which opened to investors in late February 2026, attracted strong demand from both institutional and retail participants and closed ahead of schedule prior to its March listing, underscoring investor appetite for strategic infrastructure assets.
With the revocation of its SOE status, KPC will now operate under private-sector governance structures, subject to capital markets regulations and shareholder oversight rather than direct government control.
