President William Ruto has unveiled the Government’s plan to privatise key State-owned enterprises through Initial Public Offerings (IPOs), signalling a significant shift in Kenya’s economic strategy aimed at strengthening the Nairobi Securities Exchange (NSE) and boosting investor confidence.
Speaking at the historic London Stock Exchange during a bell-ringing ceremony on Wednesday, President Ruto highlighted the growing global relevance of equity and debt markets and their potential to bolster economic resilience. He noted that well-functioning domestic capital markets reduce exposure to volatile capital flows, limit dependence on external debt, and offer diverse investment opportunities.
“The world is witnessing the growing potential of equity and debt markets, and we must continue to strengthen our own,” said the President. “We are committed to a programme that identifies and prepares a pipeline of key government assets to be privatised through the exchange.”
President Ruto announced that the Kenya Pipeline Company (KPC), a critical State infrastructure firm, is set to be listed on the NSE through an IPO later this year. This move is part of a broader strategy to deepen Kenya’s capital markets and attract both local and international investors.
“This will offer investors a unique opportunity to deploy capital in one of our most strategic infrastructure enterprises,” he said.
The President also praised recent reforms in Kenya’s financial sector, noting they have propelled the NSE to become Africa’s top performer in dollar returns in 2024. These reforms, he explained, are designed to make the bourse more robust, transparent, and globally competitive.
Kenya is keen to learn from established institutions like the London Stock Exchange, Ruto added, in a bid to modernize its financial infrastructure and create more dynamic investment channels.
President Ruto was welcomed to the London Stock Exchange by its Chief Executive Officer, Mr. David Schwimmer. He was accompanied by Prime Cabinet Secretary Musalia Mudavadi, Treasury Cabinet Secretary John Mbadi, Investment and Trade Cabinet Secretary Lee Kinyanjui, and outgoing Afrexim Bank President Benedict Oramah.
The planned IPOs are expected to inject fresh momentum into Kenya’s economic transformation and offer the public a chance to own stakes in previously government-held enterprises.
