The National Treasury Cabinet Secretary, Hon John Mbadi, has said that the government will retain a 35 per cent stake in the privatization of Kenya Pipeline Company (KPC). The government intends to raise KES 100 billion from the sale of a 65% stake or 11,812,645 shares of the energy company with an aim of financing the 2025/2026 budget. The Cabinet Secretary also said that the government is engaging transaction advisers.
“We are engaging transaction advisers. The government is to retain 35 per cent in line with what we did at Safaricom Limited,” said Mr. Mbadi.
KPC Transaction Advisers
A transaction adviser can be a company or a team of experts, such as investment bankers, accountants, corporate lawyers, who are paid to oversee the whole process of selling shares. The advisers determine the market value of the company, advise on how much stake to sell, review the company’s financial statements, and prepare documents for the Capital Markets Authority (CMA) and the Nairobi Securities Exchange (NSE). Additionally, the advisers work with PR teams to promote the Initial Public Offering (IPO) through road shows and media campaigns to attract investors. Finally, they also ensure that the money raised from the IPO reaches the government.
While addressing a joint committee of the National Assembly, Hon. Mbadi stated that the treasury aims for the ownership of KPC to be as broad as possible, with as many Kenyans as possible having a stake in it. The planned privatization has already attracted foreign investor interest, with Uganda expressing its interest in having some stake.
“Uganda has expressed interest to have some ownership. All the details in shareholder reservations will come out after transaction advisers give us its report,” said the Cabinet Secretary.
The cabinet secretary went on and warned the National Assembly on the consequences of failing to approve the privatization of KPC, citing a budget hole of KES 100 billion for infrastructure support, a possible increase in taxes, or more borrowing.
“If we don’t get that money, then we will have to tax Kenyans more, which I do not think it’s an option. Or we will borrow more, which I think is not desirable. Alternatively, we will cut development projects,” he said.
On 6th August, the National Assembly invited the public to submit their comments on the privatization plans. The submission is set to end on 13th August 2025 at 5:00 pm.
Also Read: KPC Stake Sale: National Treasury Banks on KES 100B
