The National Treasury revoked the declaration of the Kenya Pipeline Company (KPC) as a national government entity, as indicated in a gazette notice on Wednesday.
KPC now officially transitions from a state entity to a privatized Public Limited Company (PLC) following a 65% stake divestiture through an Initial Public Offer (IPO) on the Nairobi Securities Exchange (NSE).
The government now holds 35% of the issued share capital of KPC.
The privatisation was aimed to raise about Sh106.3 billion ($825 million), with shares sold to local and foreign investors seeking dividend payments and long-term growth.
The share price was set at Sh9 each with seventy thousand Kenyans reported to have sent in their bids, an average of 6,640 shares per person. In monetary terms, individual investors invested Sh59,000 on average.
It was conducted in accordance with the provisions of the Privatisation Act, 2025, the Capital Markets Act (Cap. 485A) and the Capital Markets (Public Offers, Listing and Disclosure) Regulations.
It got Parliament’s nod in October 2025, a transaction advisor was found by December and the sale commenced on January 19, 2026.
Petitioners had moved to court to oppose the move, citing a constitutional breach and that it has serious implications for national security, public finance, economic sovereignty, and the management of public assets, making it necessary for the matter to be heard by a three-judge bench.
The petitioners argued that state corporations are public assets held in trust for the people of Kenya and that their transfer to private ownership must strictly comply with constitutional requirements on public participation, transparency, accountability, and equitable use of public resources.
KPC provides efficient, reliable, safe, and cost-effective means of transporting petroleum products within East Africa, operating a network of pipelines, storage depots and terminals which play a key role in driving economic growth and development throughout the region.
