The Kenyan Cabinet has given the green light for the privatisation of the Kenya Pipeline Company (KPC), setting the stage for the partial sale of government shares and the company’s eventual listing on the Nairobi Securities Exchange (NSE). The decision was made during a Cabinet meeting chaired by President William Ruto at State House, Nairobi.
According to an official Cabinet dispatch, the move is part of a broader economic policy shift aimed at reducing the government’s direct role in business operations, and enabling the private sector to drive economic growth, innovation, and efficiency.
“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 in a move aimed at democratising ownership by Kenyans at the Nairobi Securities Exchange,” the statement read.
KPC is a strategic asset in Kenya’s energy supply chain, transporting petroleum products from Mombasa to various inland depots. Despite its profitability, the government noted that the parastatal has not reached its full market value due to bureaucratic hurdles and public sector inefficiencies.
By opening KPC to private investment, the government hopes to attract capital and professional expertise that will modernise the company’s operations and elevate it into a regional energy and logistics powerhouse. The Cabinet cited the successful privatisation of companies such as Safaricom, Kenya Commercial Bank (KCB), and KenGen as examples of how public asset divestiture can enhance performance, create jobs, and boost regional expansion.
The decision to privatise KPC is also expected to bolster investor confidence and deepen Kenya’s capital markets, aligning with long-term development goals.
“This marks a shift from state dominance in commercial enterprises to a model that embraces private sector-led growth, operational discipline, and accountability,” the Cabinet noted, adding that the move will allow public resources to be better focused on essential services like healthcare and education.
The inclusion of KPC in the privatisation pipeline will proceed under existing legal and regulatory frameworks governing the sale of public assets.
