President William Ruto chairs a Cabinet meeting at State House, Nairobi, July 29, 2025. /PCSThe Cabinet has approved the reinstatement of Kenya Pipeline Company into the privatisation programme, setting the stage for a partial sale of government shares and listing of the strategic energy parastatal on the Nairobi Securities Exchange.
According to a Cabinet dispatch, the move is part of a broader policy shift aimed at reducing government’s role in business and enabling the private sector to take the lead in driving growth, efficiency and innovation.
The resolution was reached during a Cabinet meeting chaired by President William Ruto at State House, Nairobi.
“The Cabinet gave the green light for the reinstatement of Kenya Pipeline Company (KPC) into the privatisation programme, paving the way for partial divestiture of government shares in a move aimed at democratising ownership by Kenyans at the Nairobi Securities Exchange and unlocking the company’s full commercial potential,” the statement said.
KPC plays a central role in Kenya’s energy supply chain and has consistently posted strong profitability.
Despite this, the Cabinet noted that the company “has not yet reached its optimum performance and market value, largely due to bureaucratic constraints and public sector inefficiencies.”
Privatisation is expected to inject private capital and professional expertise into the firm, modernising its operations and positioning it as a regional logistics and energy powerhouse.
The Cabinet underscored that this strategy is informed by successful precedents in other entities.
“Cabinet was reminded that similar moves in the past have yielded transformative results. Safaricom, Kenya Commercial Bank, and KenGen are prime examples of formerly state-controlled entities that became high performing companies following privatisation, driving shareholder value, expanding regionally, and creating thousands of jobs.”
The privitisation of KPC, the dispatch added, is anticipated to boost investor confidence and support the development of Kenya’s capital markets.
“The approval marks a shift from state dominance in commercial enterprises to a model that embraces private sector-led growth, operational discipline, and accountability, ultimately ensuring that public resources are better used to deliver essential services,” the Cabinet noted.
The inclusion of KPC in the privatisation pipeline is expected to proceed under existing laws and regulatory frameworks guiding the sale of public assets.
