Kenya Pipeline Corporation. Photo | Courtesy.
The National Assembly has approved the long-awaited privatization of Kenya Pipeline Corporation (KPC), paving the way for what could be the biggest stock sale in Nairobi in over 20 years.
Lawmakers adopted Sessional Paper No. 2 of 2025, which gives the government permission to sell up to 65 percent of its shares in KPC and keep at least 35 percent. Parliament directed that KPC’s value be shown clearly in the IPO prospectus with a simple report for citizens to understand.
“Listing KPC on the NSE will not only enable the company to raise capital for its regional expansion and LPG diversification plans but also deepen our capital markets by providing more investment opportunities for Kenyans,” Treasury Cabinet John Mbadi said.
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The Office of the Auditor General will audit the process within six months after completion. Transaction advisers will be hired through open competition, with fees limited to Sh100 million unless Treasury approves an increase.
To stop a few people from owning most of the shares, the Privatization Commission must set limits and make sure many Kenyans can take part. Citizens, including youth, women and persons with disabilities, will get priority in buying shares through an Employee Share Ownership Plan and small investor quotas. Other KPC subsidiaries, like Kenya Petroleum Refineries Limited, will also be reviewed and listed in the IPO documents.
The KPC privatization comes at a time when the government is under financial pressure. It hopes to raise about Sh100 billion from the sale to help fund development, pay debts, and settle pending bills. The deal was approved earlier in 2025 but faced a short court suspension before resuming. This will be Kenya’s biggest IPO in years and a major test of investor confidence in the Nairobi Securities Exchange.
