Government finalises KPC privatisation, revokes parastatal status in gazette notice

In a special gazette notice dated April 22, 2026, Mbadi revoked the classification of the Kenya Pipeline Company (KPC) as a national government entity, acting under his legal authority and marking a key step in the finalisation of the company’s restructuring.

“IN EXERCISE of the powers conferred by section 4 (1) of the Public Finance Management Act, as read with regulation 211 (7) of the Public Finance Management (National Government) Regulations, the Cabinet Secretary for the National Treasury revokes the declaration of Kenya Pipeline Company as a National Government Entity as declared under Schedule II of the Declaration of the National Government Entities (State Organs) published as Legal Notice No. 33 of 2015,” the notice reads.

The revocation effectively removes the company from the list of institutions previously under full national government control, clearing the way for its new ownership structure to take full effect.

The decision comes just as the Privatization Authority prepares to formally hand over proceeds from the Kenya Pipeline Company Initial Public Offer, in an event scheduled for today. The ceremony is expected to mark the final transfer of funds and complete the share sale process.

The Treasury Cabinet Secretary, alongside officials from the Privatisation Authority and the Kenya Pipeline Company, is expected to preside over the event, which ushers in a new phase for the firm under private ownership.

The government sold a 65 per cent stake in the company, equivalent to 11.8 billion shares, in a move aimed at improving efficiency and unlocking value from one of the country’s key petroleum transport assets.

President William Ruto on Tuesday, March 10, rang the bell at the Nairobi Securities Exchange to mark the official listing of the Kenya Pipeline Company. The IPO ran from January 19, 2026, to February 24, 2026, and raised Sh106 billion.

“The Kenya Pipeline Company IPO is the first privatization listing in nearly two decades at this bourse, the previous one being Safaricom, which was listed in June 2008,” said Ruto.

He added that proceeds from the sale will be channelled into the National Infrastructure Fund to support major development projects across the country.

“Unlike previous privatization proceeds that were absorbed in the general government budget, the proceeds of this IPO, as well as future privatization, will provide capital to the National Infrastructure Fund, which I signed into law yesterday,” the president said at the NSE event.

According to details shared during the listing ceremony, the IPO was oversubscribed by 105.7 per cent, reflecting strong investor interest in the petroleum infrastructure company.

In a separate notice, Acting Chief Executive Officer of the Privatisation Authority Jane Rose Omondi confirmed that the sale process had been fully completed and the government’s stake reduced.

“Pursuant to section 53 of the Privatisation Act, 2025, it is notified for the general information of the public that the privatisation of Kenya Pipeline Company Limited (now known as Kenya Pipeline Company PLC) has been finalised," reads the notice.

She confirmed that 65 per cent of the company’s shares were sold through the Initial Public Offer, leaving the State with a 35 per cent minority stake in the listed company.

The shares were admitted to the Main Investment Market Segment of the Nairobi Securities Exchange on March 11, 2026, in line with the Capital Markets Act and related regulations.

The Privatisation Authority said the process followed all legal requirements under the Privatisation Act, 2025, and capital markets regulations governing public offers and listings.