Members of Parliament have given the green light to the privatisation of the Kenya Pipeline Company (KPC), where the government intends to sell a 65% stake in the company.
The sessional paper on the energy firm’s privatisation received the House’s approval despite some lawmakers expressing dissatisfaction with the process. Deputy Minority Leader Mr. Robert Mbui said that the sessional paper on the privatisation of KPC was not among the motions to be discussed in Tuesday’s session. Mr. Mbui, who is a member of the House Business Committee (HBC), accused the National Assembly’s leadership of conspiring to sneak the sessional paper through a Supplementary Order Paper.
“The Order Paper was distributed yesterday (Tuesday) and had nothing to do with KPC. The Supplementary Order Paper was sneaked in at 3:30 pm, ambushing MPs,” said Mr. Mbui.
Dissenting MPs pledged to challenge the privatisation in court.
Privatisation Plan in Detail
The National Treasury plans to sell 11,812,645 shares of the company at the Nairobi Securities Exchange (NSE) through an Initial Public Offering (IPO), aiming to raise KES 100 billion to help finance the 2025/2026 budget, offset pending bills and liability management.
Earlier, National Treasury Cabinet Secretary FCPA John Mbadi warned the National Assembly on the consequences of failing to approve the privatisation, citing a KES 100 billion shortfall for infrastructure support, a possible increase in taxes, or more borrowing.
In its notice inviting public feedback, the National Assembly highlighted the benefits of KPC’s privatisation, citing that the initiative offers a strategic opportunity to unlock KPC’s full potential, enhance operational efficiency, give Kenyans a chance to own a stake in the company, and deepen Kenya’s capital markets. The cost of the transaction advisory has been currently set at KES 100 million and any upwards adjustments will have to be approved by the National Treasury.
Petroleum industry workers opposed the move, saying that the sale had been initiated without proper public participation, stakeholder engagement, or impact assessment.
KPC’s Financial Performance Review
In the year ended June 2024, Kenya Pipeline Company paid KES 7 billion in dividends to the National Treasury. In February 2025, the finance ministry received KES 3 billion in dividends for the half-year 2024/2025 from KPC. In the year ended June 2024, KPC recorded a 14.6% growth in revenue to KES 35.37 billion and a 52.7% increase in net earnings to KES 6.87 billion. If successful, KPC’s IPO will mark the largest privatisation of a state corporation in more than a decade.
Also Read: AGOA Wins Third Extension as 32 African Nations Secure Lifeline to US Market
