The National Assembly of Kenya has today invited the public to submit their opinions on the privatization of Kenya Pipeline Company (KPC). The move is in alignment with Article 118(1) (b) of the Constitution of Kenya, which requires the Parliament to facilitate public participation and involvement in the law-making and other activities of the Parliament.
The National Treasury plans to sell 65 percent of its shares in the upstream energy company on the Nairobi Securities Exchange (NSE) through an IPO by September. This indicates that the government will retain 6,360,655 of the 18,173,300 shares in KPC and float 11,812,645 shares on the Nairobi Bourse.
According to the notice, the privatization plans offer a strategic opportunity to the company to unlock its full potential, enhance operational efficiency, give Kenyans a chance to own a piece of KPC, and strengthen Kenya’s capital markets. Additionally, the privatization will enable the government to raise funds to finance its 2025/2026 budget, thereby reducing reliance on borrowing.
KPC’s listing is anticipated to generate strong investor appetite due to its strong revenue background, high profits, and significant decrease in long-term debt. The IPO is also expected to be the largest privatization of a state corporation in over a decade.
The public has until 13th August to submit their views.
Also Read: Kenya Pipeline Company Set to Go Public by September
