The High Court has temporarily stopped the government from moving forward with its plan to privatise the Kenya Pipeline Company Limited (KPC), in a significant win for consumer rights advocates.
Justice Bahati Mwamuye issued conservatory orders on Thursday, restraining the Cabinet Secretary for National Treasury and Economic Planning, the Privatisation Authority, and other respondents from selling, transferring, or otherwise dealing with any shares of KPC. The order will remain in force until the court determines a petition filed by the Consumers Federation of Kenya (COFEK).
In its petition, COFEK argued that the proposed privatisation of KPC poses serious risks to public interest, national security, and the strategic management of the country’s oil pipeline infrastructure. The group contends that KPC, as a state corporation, plays a vital role in ensuring the stability of petroleum supply and pricing in Kenya, and should therefore remain under public ownership.
Justice Mwamuye directed COFEK to serve the respondents and all interested parties with the petition, supporting documents, and the court’s orders without delay. The organisation was also ordered to file proof of service before the end of the day.
The case will be heard in open court on September 5, 2025, at 10:00 a.m., when both the government and COFEK will have the opportunity to present arguments.
The ruling comes amid increased scrutiny of the government’s privatisation agenda, which targets several state-owned enterprises as part of broader economic reforms and fiscal consolidation measures. While proponents argue that privatisation can boost efficiency, attract investment, and reduce the public wage bill, critics warn of potential asset undervaluation, job losses, and reduced public accountability.
KPC, established in 1973, operates a network of pipelines transporting petroleum products from Mombasa to inland depots. It is considered one of Kenya’s most profitable state corporations, contributing significant revenue to the national treasury.
With the court’s intervention, the fate of the privatisation plan now hinges on the upcoming hearing, a case that is expected to draw wide public and political interest given KPC’s strategic importance to Kenya’s energy security and economic stability.
