Kenya Pipeline
The Canibet has approved the privatisation of the Kenya Pipeline Company (KPC), a move that will see the company’s shares listed at the Nairobi Securities Exchange (NSE).
In a statement on Tuesday, the Cabinet said the privatisation of the company will unlock its full commercial potential.
“The Cabinet gave the green light for the reinstatement of the Kenya Pipeline Company (KPC) into the privatisation programme, paving the way for partial divestiture of government shares in a move aimed at democratising ownership by Kenyans at the Nairobi Securities Exchange and unlocking the company’s full commercial potential,” a communique form State House read in part.
According to the Cabinet, the decision reflects the government’s policy shift toward reducing its role in doing business and instead enabling the private sector and industry experts to drive growth, efficiency, and innovation.
KPC, a strategic player in Kenya’s energy supply chain, has maintained a strong profitability record and holds significant asset value.
However, the Cabinet noted that the company has not yet reached its optimum performance and market value, largely due to bureaucratic constraints and public sector inefficiencies.
Bringing in private capital and professional expertise is expected to inject new energy into the company, modernise operations, and position KPC as a regional logistics and energy powerhouse.
“Cabinet was reminded that similar moves in the past have yielded transformative results. Safaricom, Kenya Commercial Bank, and KenGen are prime examples of formerly State-controlled entities that became high-performing companies following privatisation, driving shareholder value, expanding regionally, and creating thousands of jobs,” the Cabinet stated.
The divestiture of KPC is expected to follow this path, boosting investor confidence and supporting the development of Kenya’s capital markets
The approval marks a shift from State dominance in commercial enterprises to a model that embraces private sector-led growth, operational discipline, and accountability, ultimately ensuring that public resources are better used to deliver essential services.
At the same time, the Cabinet approved the implementation of Phase III of the Last Mile Connectivity Project, targeting 180,500 new electricity connections for households, schools, health centres, and MSMEs, while strengthening Kenya’s distribution grid.
The top decision-making organ also endorsed the August 2025 launch of the National Youth Opportunities Towards Advancement (NYOTA) Project, a flagship government and World Bank initiative targeting over 820,000 vulnerable and unemployed youth, including persons with disabilities.
The programme aims to enhance employability, skills recognition, and access to decent work, and is a key pillar of the Bottom-Up Economic Transformation Agenda.
