Privatisation Commission issues notice for sale of Kenya Pipeline shares
The Commission explained that the privatisation of KPC will help generate funds for the government’s 2025/2026 financial year while encouraging wider participation in state-owned enterprises.
The government has taken another major step toward opening ownership of state corporations to the public after the Privatisation Commission issued an official notice for the sale of shares in the Kenya Pipeline Company (KPC) Limited.
The announcement, made on Thursday, follows a series of approvals, first by the Cabinet and later by the National Assembly, which endorsed the transaction on October 1, 2025.
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According to a statement signed by Privatisation Commission Chairperson Faisal Abass, the notice was published in compliance with Section 30 of the Privatisation Act, 2005, which requires the Commission to publicly announce all approved transactions.
“Following the approval of the privatisation method for the KPC by the Cabinet, and the approval thereof by the National Assembly on 1st October 2025, the Privatisation Commission hereby gives notice of the approved transaction,” the notice reads.
The Commission explained that the privatisation of KPC will help generate funds for the government’s 2025/2026 financial year while encouraging wider participation in state-owned enterprises.
“The privatisation aims to enable the government to raise funds budgeted for the 2025/2026 financial year required to implement economic and social objectives,” the notice states.
In addition, the Commission said the exercise would give Kenyans a chance to become part owners of one of the nation’s most valuable and strategic companies.
“It will empower ordinary Kenyans to own a stake in one of the country’s profitable and strategic enterprises, promote inclusive economic growth, and strengthen transparency and corporate governance through stock exchange listing and regulatory oversight,” the Commission added.
The privatisation also seeks to enhance efficiency and innovation at KPC, support development goals, and boost the depth and liquidity of the local stock market.
The plan involves selling shares through an Initial Public Offer (IPO) on the Nairobi Securities Exchange, a move approved by Parliament in line with Section 25(a) of the Privatisation Act, 2005.
“In compliance with section 25 (a) of the Privatisation Act, 2005, the National Assembly has approved the privatisation of KPC through an Initial Public Offer (IPO) of shares on the Nairobi Securities Exchange (NSE),” the notice states.
KPC, which began operations in 1978 after its incorporation in 1973, is a key state enterprise tasked with transporting petroleum products across Kenya and to regional markets, including Uganda, Rwanda, Northern Tanzania, Burundi, South Sudan, and the Democratic Republic of Congo (DRC).
The firm currently operates under full government ownership, with 99.9 per cent of shares held by the Treasury and 0.1 per cent by the Ministry of Energy and Petroleum.
The Commission has set March 31, 2026, as the anticipated closing date for the privatisation process.
Chairman Faisal Abass noted that the sale represents a balance between modernisation and public interest.
“The privatisation of KPC balances economic empowerment, national interest, and institutional modernisation in a manner that will benefit both the public and the economy at large,” he said.
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