Oil & Gas

Kenya is set to list the Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange (NSE) by September, President William Ruto announced on July 23, according to Business Daily. The Privatisation Commission is finalising the structure of the initial public offering (IPO) and will present it to the Cabinet for approval in the coming weeks. This move is part of a broader strategy to revive stalled privatisation efforts.

President Ruto emphasized a structured and time-bound approach to state divestitures. “We are implementing a structured time-bound divestiture programme starting with the listing of the KPC,” he said. He expects Cabinet approval soon, with the listing to take place before the end of September. Additionally, the National Treasury is drafting a disclosure framework to guide future listings of state-owned enterprises.

KPC, which is 99.9% owned by the National Treasury, is a key midstream petroleum logistics firm responsible for transporting refined fuels across Kenya and neighbouring countries. The company posted a pre-tax profit of KES 10 billion ($77.13 million) in the 2023–24 financial year, a 32% increase from the previous year. Revenue also rose by 15% to KES 35.4 billion, with dividends of KES 7 billion paid to the government.

This marks Kenya’s first privatisation through the NSE since the 2008 Safaricom IPO, indicating renewed momentum in unlocking value from public assets. KPC’s strong performance and infrastructure—over 1,300km of pipeline and a 14 billion-litre capacity—make it an attractive asset for investors. Other firms slated for privatisation include the National Oil Corporation, Kenya Literature Bureau, and New Kenya Cooperative Creameries.