NAIROBI, Kenya — The National Treasury of Kenya has formally revoked the state entity status of Kenya Pipeline Company (KPC), marking a major policy shift in the management of public assets following the firm’s partial privatisation.
Treasury Cabinet Secretary John Mbadi signed a legal notice on April 22, 2026, removing KPC from the list of National Government Entities under the Public Finance Management Act, Cap. 412A.
“IN EXERCISE of the powers conferred by section 4 (1) of the Public Finance Management Act… the Cabinet Secretary… revokes the declaration of Kenya Pipeline Company as a National Government Entity,” the Gazette notice states.
The move follows KPC’s Initial Public Offering on the Nairobi Securities Exchange, where the government offloaded a 65pc stake to retail and institutional investors.
Trading of the company’s shares on the Main Investment Market Segment began on March 10, 2026.
The state now retains a 35pc stake, ending over four decades of full government ownership since the company’s establishment in 1973.
Ahead of the listing, KPC was converted into a public limited company and rebranded as Kenya Pipeline Company PLC.
Despite the ownership changes, the company’s core mandate remains intact. According to the notice, KPC will continue to provide “efficient, reliable, safe, and cost-effective” transportation of petroleum products across East Africa.
However, the revocation carries significant governance implications.
By exiting the classification of a national government entity, KPC will no longer be subject to the strict financial oversight and reporting frameworks set out under the Public Finance Management regime.
Instead, its operations will now be governed primarily by corporate and capital markets laws, including the Privatisation Act 2025 and the Capital Markets Act, Cap. 485A, alongside listing and disclosure regulations.
Analysts say the shift could enhance operational efficiency and investor confidence by reducing bureaucratic controls, while aligning KPC with private-sector governance standards.
At the same time, it raises questions about public accountability, given the company’s strategic role in Kenya’s energy supply chain.
Critics have also pointed to the influence of firms linked to KPC within the petroleum supply chain, warning that changes in ownership and control over critical infrastructure could have downstream effects on pricing and market competition.
The Treasury maintains that the privatisation process complied fully with existing legal frameworks, signalling a broader policy direction toward reducing direct state participation in commercial enterprises while retaining minority strategic stakes.
