Shares in the Kenya Pipeline Company (KPC) are poised to hit the Nairobi Securities Exchange (NSE) by September 2025, following a directive by President William Ruto aimed at accelerating Kenya’s privatisation agenda.
Addressing stakeholders during a bell-ringing ceremony at the NSE on Wednesday, Ruto confirmed that Cabinet approval for the KPC divestiture is expected before the end of July, setting the stage for parliamentary consideration ahead of the landmark listing.
“Privatisation is no longer optional,” the President declared, stressing the urgency of introducing market discipline and private-sector efficiency into public enterprises.
“There is compelling evidence that privatisation is necessary to eliminate inefficiencies and raise the standards of governance in our public enterprises,” he said.
If successful, the KPC offering would mark the first time in nearly twenty years that Kenya privatises a state corporation via the capital markets.
Read More
The last such transaction was the Safaricom IPO in 2008, a listing that drew widespread public and investor interest.
President Ruto argued that opening up public firms to private investment would inject new energy into their operations and improve governance standards.
He further noted that the proceeds from the KPC listing would fund the company’s regional expansion and enable diversification into areas such as liquefied petroleum gas and other energy ventures.
The government is also tightening transparency rules across state-owned firms.
According to Ruto, a new disclosure framework will compel public entities to issue regular financial and operational reports in line with capital market requirements
Additionally, such institutions will be required to float at least 20 per cent of their equity on the NSE within one year of their first disclosure.
Other state-owned firms earmarked for potential listings include the National Oil Corporation, New Kenya Cooperative Creameries, Kenya Literature Bureau, and Rivatex East Africa.
All are part of a broader effort announced on July 3 to revitalise the public sector and draw international capital into Kenyan markets.
The IPO strategy signals a bold shift from decades of cautious reform and signals the administration’s resolve to unlock capital, restore investor confidence, and reduce state involvement in commercial enterprises.
As KPC prepares for its market debut, attention will now turn to Parliament’s role in shaping the final contours of the deal and ensuring public interest is safeguarded.
Should the timeline hold, KPC’s listing could usher in a new chapter for Kenya’s capital markets, reviving interest in state-led IPOs and possibly setting a precedent for other struggling public enterprises.
