MPs order government to address financial mismanagement before selling KPC stake
The privatisation plan has been presented to Parliament and is now with the joint committees on Energy, Public Debt and Privatisation for detailed review.
Members of Parliament (MPs) have pushed the government to first deal with waste and poor management of public money before advancing with plans to privatise the Kenya Pipeline Company (KPC).
This strong view was expressed during a meeting on Monday, August 11, 2025, where Treasury Cabinet Secretary John Mbadi defended the government’s intention to sell a portion of KPC.
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The move, detailed in Sessional Paper No. 2 of 2025, aims to raise around Sh100 billion to support the budget and avoid delays in vital development projects.
Mbadi argued that privatisation offers a way to generate funds without increasing taxes on Kenyans.
“Raising taxes at this point is not an option. Privatisation will give us fiscal space while avoiding more burdens on taxpayers,” he said.
Despite this, MPs emphasised that KPC is a profitable and vital asset that should not be sold off without first tightening financial controls.
They urged stronger oversight, better resource use, and stopping leakages in ministries and agencies.
In reply, Mbadi assured that the Treasury has started reforms such as e-procurement and stronger accountability rules to reduce wasteful spending.
“These measures will go a long way in reducing unnecessary expenditure across government operations,” he said.
The privatisation plan has been presented to Parliament and is now with the joint committees on Energy, Public Debt and Privatisation for detailed review.
MPs will have to balance the expected financial benefits with the need to retain control of key state assets.
The public was invited to give their opinions on the plan until August 13, 2025, following the formal introduction of the Sessional Paper No. 2 of 2025.
The Treasury seeks to sell a 65 per cent stake in the state-owned company, a move expected to boost activity at the Nairobi Securities Exchange (NSE) after a long lull in new listings.
The aim is to reduce government control in major commercial firms, bring in private investment, improve efficiency, and increase competition in the petroleum infrastructure sector.
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