Kenya Pipeline privatised: Government revokes entity status, IPO raises billions
The National Treasury has revoked the declaration of Kenya Pipeline Company as a national government entity, marking its official transition into a privatised Public Limited Company.
The move follows the government's decision to divest 65% of its stake through an Initial Public Offer (IPO) on the Nairobi Securities Exchange, leaving the state with a 35% shareholding in the company.
IPO raises billions from investors
The privatisation aimed to raise approximately KSh 106.3 billion ($825 million), with shares priced at KSh 9 each and sold to both local and international investors seeking dividend income and long-term growth.
Reports indicate that about 70,000 Kenyans submitted bids, with the average investor applying for roughly 6,640 shares, translating to an average investment of about KSh 59,000 per person.
The process was conducted under the Privatisation Act, 2025, the Capital Markets Act and the Capital Markets (Public Offers, Listing and Disclosure) Regulations.
Parliament approved the privatisation in October 2025. A transaction advisor was appointed in December, and the share sale officially began on January 19, 2026.
Legal challenges raised
The privatisation faced opposition in court, with petitioners arguing the move could breach constitutional requirements and raise concerns around national security, public finance and economic sovereignty.
They maintained that state corporations are public assets held in trust for Kenyans and that any transfer to private ownership must strictly follow constitutional requirements on public participation, transparency and accountability. The petitioners requested the matter be heard by a three-judge bench.
Strategic role in energy transport
Kenya Pipeline Company plays a critical role in transporting petroleum products across East Africa. The firm operates an extensive network of pipelines, storage depots and terminals, providing what has long been considered a reliable and cost-effective system for fuel distribution across the region.
The transition to a PLC marks one of the most significant privatisation moves in recent years and signals a new phase for the company as it enters the public investment market.
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