Ruto outlines fresh privatisation strategy to make state firms more profitable
By Cynthia Lodite, August 22, 2025President William Ruto has announced the government’s intentions of having more state corporations listed for privatisation owing to the success of Safaricom and Kenya Commercial Bank.
On his part, Ruto noted that the government will list the companies on the Nairobi Securities Exchange (NSE), in a move aimed at broadening public ownership, enhancing governance, and increasing profitability.
The Head of State made his remarks on Friday, August 22, 2025, in Yokohama City, Japan, where he is attending the 9th TICAD meeting.
“The government will increasingly divest from state corporations through the Nairobi Securities Exchange so that more Kenyans can own a part of the successful companies, inject private sector governance, and make them much more profitable than they are now,” Ruto said.
At the time, President Ruto revealed that the Kenya Pipeline Company (KPC) is next in line for privatisation, with plans already at an advanced stage to appoint a transaction advisor.
He further cited the successful privatisation of Kenya Commercial Bank (KCB) and Safaricom as proof that public listing of state assets can deliver significant returns.
“Kenya Pipeline Company is next in line, and plans are at an advanced stage to begin the search for a transaction advisor. The experience with the privatization of the Kenya Commercial Bank and Safaricom has proven that there is value in going in this direction,” Ruto said.
Worth noting, Ruto made the remarks after meeting International Finance Corporation (IFC) Managing Director Mokhtar Diop. He praised Kenya’s longstanding relationship with the World Bank Group, noting that IFC plays a key role in private sector-driven development across Africa.
“Met International Finance Corporation (IFC) Managing Director Mokhtar Diop, Yokohama City, Japan. We expressed our satisfaction with the excellent relationship between Kenya and the World Bank Group. IFC is the Bank’s development institution focusing on the private sector,” Ruto said.
MPs question KPC privatisation plan
Meanwhile, Ruto’s remarks come weeks after Members of Parliament raised serious 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% stake while offering 65% of shares to the public through the Nairobi Securities Exchange.