The National Treasury aims to collect around Ksh100 billion from the sale of Kenya Pipeline Company (KPC) shares through an Initial Public Offering (IPO) at the Nairobi Securities Exchange. The proceeds will help fund key development projects and reduce Kenya’s reliance on borrowing.
A Sessional Paper tabled in Parliament on May 5, 2025, outlines the proposed KPC privatisation, which the Treasury says is critical to financing the 2025/26 national budget. Treasury Cabinet Secretary John Mbadi told MPs the IPO will support public service delivery, infrastructure development, and long-term economic goals.
He noted that the proposed privatisation balances economic empowerment, national interest, and institutional modernisation. Mbadi said it will benefit both the public and the broader economy.
If Parliament approves the proposal by the end of August, the Privatisation Commission is expected to implement the IPO before the end of September 2025.
Mbadi emphasized that the transaction will enhance transparency, improve service delivery, and attract private sector investment while allowing ordinary Kenyans to own shares in one of the country’s most profitable state corporations.
The Treasury estimates that fixed transaction and public participation costs will total Ksh100 million, with the rest of the advisory fees – such as due diligence, underwriting, and success commissions – being deducted from IPO proceeds.
He assured Parliament that no job losses would result from the restructuring, adding that KPC’s current staffing and structure would remain intact. An Employee Share Ownership Plan (ESOP) will also be included in the transaction to ensure workers have a stake in the company’s future growth.
The KPC, established in 1973 and fully owned by the government, has over 1,300 kilometres of pipeline and supplies fuel to regional as well as local markets. It posted Ksh35.4 billion in revenue and Ksh6.9 billion in profit in the 2023/24 financial year, with dividends paid to the Treasury.
Mbadi outlined that the IPO of KPC is part of a broader privatisation programme that had been approved by Cabinet in 2008 and aims to enhance capital market depth, enhance private investment, and also expand public shareholding in the economy.
“It will empower ordinary Kenyans to own a stake in one of the country’s profitable and strategic enterprises, promote inclusive economic growth, and strengthen transparency and corporate governance through stock exchange listing and regulatory oversight.”
He also pointed out that the sale of KPC shares is consistent with Section 23 of the Privatisation Act, which requires Cabinet and parliamentary approval of all transactions under the programme.
