A Nairobi High Court has temporarily halted the planned privatisation of the Kenya Pipeline Company, stopping the government from selling its stake in the state-owned energy entity until a pending petition is determined.
The ruling, issued on August 15, 2025, restrains the National Treasury, the Privatisation Authority, and other government entities from proceeding with the proposed share purchase agreement. The court directed that no sale, transfer, allocation, or disposal of Kenya Pipeline Company (KPC) shares should take place until the matter is fully heard and resolved.
The case was filed by the Consumers Federation of Kenya (COFEK), which argues that the government’s privatisation process lacked transparency, public participation, and disclosure of critical information. According to the petition, the sale of a controlling stake in a profitable and strategic state corporation such as KPC requires openness and accountability, given its central role in Kenya’s energy infrastructure.
COFEK also raised concerns over the absence of an independently verified valuation, cost-benefit analysis, or fiscal impact assessment to determine the true value and implications of the deal. They argue that proceeding with the transaction in its current form undermines constitutional principles of public finance management, including prudent use of resources, transparency, and fairness in the disposal of public assets.
The petitioners requested the court to order the Auditor General to conduct a comprehensive audit and present a verified report on the actual value of the government’s stake in KPC. They contend that such a measure is necessary to safeguard public interest and prevent the undervaluation or mismanagement of national resources.
Furthermore, COFEK maintains that the privatisation plan contravenes Article 10 of the Constitution, which upholds values of transparency, accountability, and public participation in governance. They stress that failure to involve citizens in decision-making around such a significant transaction violates binding constitutional principles.
By issuing conservatory orders, the High Court has effectively paused the government’s efforts to implement the privatisation deal until the case is heard inter partes. The matter has been scheduled for an open court hearing on September 5, 2025.
The ruling is expected to spark renewed debate on the future of state-owned corporations in Kenya, especially those considered profitable and strategically vital to the economy.
