Nairobi, Kenya – Parliament on Wednesday approved the long-debated plan to privatize the Kenya Pipeline Company (KPC), paving the way for the sale of a majority stake in one of the country’s most strategic state corporations.
Under the Treasury’s proposal, the government will offload 65 P.c of its shareholding in KPC through an Initial Public Offering (IPO) at the Nairobi Securities Exchange, while retaining at least 35 P.c ownership.
Treasury projects the sale will raise Sh100 billion, which it argues is essential for financing the 2025/26 budget, funding critical infrastructure projects, and reducing dependence on public borrowing.
Majority Leader Kimani Ichung’wah, who seconded the motion, dismissed fears of a total sell-out, insisting the state would maintain control.
“This means we will still maintain control, as no single investor will be able to take up the entire 65 percent. I invite all Kenyans to start saving in preparation to buy shares in this company,” he told MPs.
The decision, however, has ignited uproar from the opposition, who accused the Executive of sneaking the motion into Parliament without proper debate.
Deputy Minority Leader Robert Mbui claimed the sessional paper was “ambushed” onto the Supplementary Order Paper at 3:30 p.m. on the same day.
“The House has been compromised. This was an ambush. We are asking Kenyans to move to court even as the united opposition prepares to do the same,” Mbui said, vowing to challenge the privatization in court.
Opposition leaders argue that KPC, which controls the transportation and storage of petroleum products nationwide, is too strategic to place in private hands.
They warn that privatization could drive up fuel costs, reduce accountability, and expose the sector to monopolistic risks.
Despite the Treasury’s upbeat projections, KPC carries substantial financial baggage. Documents tabled in Parliament reveal that the company has Sh5.75 billion in unsettled liabilities, which must be resolved before the privatization proceeds.
Analysts say this raises questions about the attractiveness of the IPO, given the burden of pending debts.
Economist Dr. Njeri Mwangi observed: “KPC has been plagued by governance issues and financial inefficiencies in the past. Any privatization must address these structural problems; otherwise, the liabilities could undermine the entire process.”
The KPC sale is part of the government’s broader privatisation agenda targeting nearly two dozen state corporations, including Kenya Airways, the Kenya Electricity Generating Company (KenGen), and the Kenya Ports Authority.
The Kenya Kwanza administration has argued that partial divestment will boost efficiency, attract private capital, and ease the public debt crisis.
But critics say the speed and manner of the approvals reflect a lack of transparency. Civil society groups warn that without strict oversight, privatization could repeat past scandals where strategic assets were sold below value or captured by politically connected elites.
With parliamentary approval secured, the Treasury must now work with the Capital Markets Authority and the Nairobi Securities Exchange to structure the IPO.
Officials have hinted at offering preferential share allocations to ordinary Kenyans, similar to past public offerings such as Safaricom’s in 2008.
For now, the stage is set for one of Kenya’s largest privatization efforts in decades. Proponents hail it as a lifeline for the cash-strapped exchequer, while opponents see it as a rushed and risky gamble with a company central to Kenya’s energy security.
As opposition leaders prepare to mount legal challenges, the battle over KPC’s future is far from over.
