Court gavel./FILEThe High Court in Nairobi has issued temporary orders stopping the government from proceeding with the planned sale of the Kenya Pipeline Company (KPC) under its ongoing privatisation programme.
Justice Bahati Mwamuye, delivering the ruling on Friday morning, restrained the National Treasury, the Privatisation Authority, and other state agencies from offering, selling, allocating, or transferring any KPC shares until a petition filed by the Consumers Federation of Kenya (Cofek) is heard and determined.
“Pending the inter partes hearing and determination of the petitioner’s notice of motion application dated August 14, 2025, a conservatory order be and is hereby issued restraining the respondents and the interested parties, jointly and severally, and whether by themselves or through their agents, servants, or any person acting under their authority, from offering for sale, allocating, disposing, transferring, or otherwise dealing with any shares of the Kenya Pipeline Company Limited pursuant to the impugned privatisation plan that is the subject of the petition herein,” the judge ruled.
The court set the matter for hearing on September 5, 2025 and directed Cofek to serve the order, the application, and the petition on the respondents and interested parties immediately, filing an affidavit of service by the end of Friday.
The respondents must file and serve their responses by August 22, with any rejoinder from Cofek due by August 29.
Preliminary written submissions are to be filed by September 3.
The petition challenges the National Treasury’s plan to raise approximately Sh100 billion through the sale of KPC shares via an initial public offering at the Nairobi Securities Exchange.
The Cabinet approved the proposal on July 29 during a meeting chaired by President William Ruto at State House, Nairobi, as part of a broader policy to reduce the government’s role in business and encourage private sector-led growth, efficiency, and innovation.
“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,” a State House dispatch stated.
KPC, which plays a central role in Kenya’s energy supply chain, has consistently posted strong profits.
The government argues that privatisation will bring in private capital and professional expertise to modernise operations and position the firm as a regional logistics and energy leader.
Citing precedents such as Safaricom, Kenya Commercial Bank, and KenGen, the Cabinet said these entities thrived after privatisation, expanding regionally, creating jobs, and boosting shareholder value.
Cofek, however, has raised procedural and consequential concerns over the planned sale.
