NAIROBI,Kenya— The Cabinet has greenlighted the partial privatisation of the Kenya Pipeline Company (KPC) in what government says is anchored on unlocking the firm’s commercial potential and reducing government dominance in the business sector.
Cabinet through a dispatch Tuesday endorsed KPC’s reinstatement into the privatisation programme, paving the way for the sale of government shares to Kenyan investors through the Nairobi Securities Exchange (NSE).
The move is part of a broader government strategy to inject private capital and professional expertise into strategic state-owned enterprises.
KPC, a critical player in Kenya’s energy supply chain, has remained profitable but is yet to achieve peak performance, with bureaucratic bottlenecks cited as key barriers.
“Privatisation will help modernise KPC’s operations, improve governance, and position the company as a regional logistics and energy powerhouse,” the Cabinet noted.
The cabinet pointed to successful examples like Safaricom, Kenya Commercial Bank, and KenGen, which have grown rapidly and expanded regionally after transitioning from government control to public-private ownership models.
Similar outcomes are expected with KPC, particularly in terms of investor confidence, operational efficiency, and innovation.
The Cabinet said the decision is aligned with Kenya’s long-term economic strategy of enabling the private sector to lead in investment and job creation, while the State focuses on regulation and service delivery.
The government contends that the privatisation will also boost Kenya’s capital markets and deepen financial inclusion by giving ordinary Kenyans a chance to co-own a vital national asset.
The government has identified several other firms for privatisation including the Kenya Ports Authority (KPA), which is exploring concessioning models for port services; the Development Bank of Kenya, set for sale to a strategic investor; the Kenya Meat Commission, targeted for private sector management; the financially distressed East African Portland Cement Company, which is undergoing restructuring; the National Oil Corporation of Kenya, currently under review; and further divestiture from KenGen, where the State still holds a majority stake.
The Treasury and relevant regulatory agencies will now begin the formal process of structuring the divestiture and identifying the shareholding model for the upcoming public offering.
