Fuel prices in Kenya will remain steady even if the government goes ahead with plans to sell most of its shares in the Kenya Pipeline Company (KPC), Energy and Petroleum Cabinet Secretary Opiyo Wandayi has told Parliament.

Addressing MPs during the consideration of Sessional Paper No. 2 on KPC’s proposed privatisation, Wandayi said the transaction would have no bearing on pump prices because the Energy and Petroleum Regulatory Authority (EPRA) would still oversee the sector under its existing tariff framework.

“We believe privatisation of the company will not affect the current pricing mechanism, since EPRA will continue to regulate and monitor all aspects of the petroleum industry, including fair competition, consumer protection, product quality compliance, and equitable access to KPC’s services across regions,” Wandayi stated.

His remarks came as lawmakers examined the government’s plan to dispose of 65 per cent of its holding in the state-owned energy firm, which is valued at about Sh120 billion.

If approved, the move would cut the State’s stake to 35 per cent and is expected to generate roughly Sh100 billion through an initial public offering.

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The Treasury has also proposed offering shares to KPC employees before the company is listed on the Nairobi Securities Exchange in September.

The sale, officials argue, will open ownership to the public while maintaining government influence over the strategic utility.

Wandayi’s reassurance appeared aimed at easing fears that privatisation could spark fuel price volatility.

He stressed that EPRA’s mandate, to maintain a fair market, keep prices in check, and ensure consistent fuel quality, would remain intact regardless of who held the majority shares.