NAIROBI, Kenya — The High Court of Kenya has dismissed a series of legal petitions challenging the proposed privatisation of the Kenya Pipeline Company Limited (KPC), effectively clearing the legal path for the government to proceed with its long‑debated plan to divest stakes in the state‑owned energy firm.
The ruling is a significant victory for the administration’s broader privatisation agenda and removes key judicial obstacles that had threatened to stall the process.
In a detailed judgment delivered on Thursday, February 19, 2026, the High Court found that the process leading up to privatisation, including legislative and policy frameworks, had been conducted in substantial compliance with the Constitution and existing law.
The consolidated petitions, brought by civil society groups and labour organisations, argued that the Privatisation Act, 2025 and the proposed sale of state‑owned enterprises, including KPC, were unconstitutional and lacked proper public participation.
Justice Bahati Mwamuye, presiding over the case at the Milimani Law Courts in Nairobi, dismissed the claims, finding that Parliament retained sufficient oversight and that the legislative process did not hand unchecked power to the Executive.
He ruled there was no evidence showing the government violated constitutional or legal provisions in moving forward with the planned sales.
The government has flagged the partial privatisation of KPC as part of its broader economic strategy to boost efficiency in state‑owned enterprises, deepen capital markets, and raise funds for critical development projects.
Under the plan outlined in Sessional Paper No. 2 of 2025, the state will retain a minority stake in KPC while offering the majority of shares to private investors through a public listing.
KPC, incorporated in 1973 and operational since 1978, is responsible for transporting petroleum products, including petrol, diesel, jet fuel and kerosene, across Kenya and to regional markets.
The High Court’s decision now permits the government to proceed with preparations for the listing, which is expected to be conducted on the Nairobi Securities Exchange (NSE) by March 2026, according to government sources.
Petitioners had also claimed that selling stakes in KPC threatened national interests, including energy security and workers’ rights, especially in the absence of sufficient stakeholder consultation.
Some labour unions and consumer groups argued that the company’s profitability, previously reported at billions of shillings in profit and dividends, made it a valuable public asset that should not be sold off.
However, the court’s ruling rejected those arguments, giving legal backing to the government’s assertion that partial privatisation and share sale through an initial public offering (IPO) would unlock value, improve corporate governance, and mobilise capital for both KPC and the national economy.
Government officials have welcomed the judgment, saying it provides certainty and momentum for the implementation of planned divestitures in KPC and other state firms covered under the Privatisation Act, 2025.
They argue the move will not only generate revenue for development but also expand shareholder participation in the broader economy.
