Govt initiates Kenya Pipeline privatisation, explains how to secure shares
By Cynthia Lodite, October 14, 2025The government, through the Privatization Commission board, has announced details of how to secure shares for Kenya Pipeline Company (KPC) Limited in a new move to privatise the government-owned parastatal.
In a gazette notice issued on Tuesday, October 14, 2025, the board announced that in compliance with Section 25 of the Privatization Act, 2005, the National Assembly has approved the privatisation of the Kenya Pipeline Company.
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In addition, the Privatization Commission further revealed that all shares will be handled through an Initial Public Offering (IPO) of shares on the Nairobi Securities Exchange (NSE).
“In compliance with Section 25 of the Privatization Act, 2005, the National Assembly has approved the privatization of Kenya Pipeline Company (KPC) Limited through an Initial Public Offering (IPO) of shares on the Nairobi Securities Exchange (NSE),” read the notice in part.
Likewise, the government has announced that the Initial Public Offering of shares on the Nairobi Securities Exchange will run until March 31, 2026.
“The expected closing date for the transaction is 31st March 2026,” read the notice in part.
MPs demand transparency on KPC privatisation
As the government issues a guided plan on securing shares for KPC, Members of Parliament have recently raised concerns over the government’s plan to privatise the Kenya Pipeline Company (KPC), criticising what they described as a lack of transparency in the process.
The Joint Committee on Energy and the Committee on Public Debt and Privatisation, co-chaired by Nakuru East MP David Gikaria and MP Abdi Shurie, met on Tuesday, 12 August 2025, to discuss the decision to sell a majority stake in KPC despite steady profit growth in recent years.
Under the proposed plan, the National Treasury intends to retain a 35 per cent stake while offering 65 per cent of shares to the public through the Nairobi Securities Exchange.
Process under scrutiny
Lawmakers accused the Treasury of conducting an opaque process, pointing out that the committee has yet to receive a valuation report for the company.
“You cannot sell something that you do not even know its value,” said Aden Daudi, emphasising the need for a comprehensive and public valuation to establish KPC’s true worth.
Members also voiced concerns about the future of KPC employees, fearing privatisation could lead to restructuring and job losses.
Cabinet Secretary for Energy and Petroleum, Opiyo Wandayi, assured the committee that employee welfare is protected under existing laws.