The government has announced a major shift in how it manages public assets after listing the Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange (NSE). The government say the move is expected to unlock billions of shillings that will help finance critical infrastructure projects without adding pressure to the country’s debt.

The development was announced in a statement shared on X on Tuesday, March 10, 2026, by the State Department for Public Investments and Asset Management, which operates under the National Treasury of Kenya. The department described the listing as a major moment in the country’s economic planning, noting that it represents a new approach to how the government handles and grows national assets.

“The listing of the Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange (NSE) today, March 10, 2026, is a watershed moment for Kenya’s fiscal architecture,” the statement reads.

The department explained that the move is a strategy by the National Treasury to unlock value from existing state assets and redirect the money to future development projects across the country.

“Under the strategic direction of The National Treasury, this privatisation move is not just a sale of shares; it is a sophisticated ‘recycling’ of capital,” the statement reads.

The department added that by converting an established state-owned asset into liquid capital, the government hopes to finance new projects without increasing the country’s national debt.

“By converting a mature state asset into liquid capital, National Treasury is seeding the future of Kenyan development without increasing the national debt burden,” the statement reads.

The department also pointed out that the National Treasury has gradually shifted its focus from simply overseeing parastatals to actively managing and growing public investments for the benefit of the country.

“The National Treasury, through the State Department for Public Investments and Asset Management (SDPIAM), has shifted its role from a custodian of parastatals to a manager of national wealth,” the statement reads.

The decision to privatise part of KPC

The department said the decision to privatise part of KPC will also introduce greater accountability and efficiency by exposing the company to the discipline of the capital markets.

“Optimising the Portfolio: The SDPIAM’s mandate is to ensure that public assets like KPC perform at peak efficiency. Privatisation introduces market discipline, forcing greater transparency and operational agility,” the statement reads.

According to the statement, the Ksh106 billion expected from the KPC initial public offering will become the foundation of a new national fund aimed at financing large infrastructure projects. The departent further explained that the new fund will allow the government to redirect money from established assets to new projects such as dams, clean energy initiatives and the extension of the Standard Gauge Railway.

“Capital Recycling: The Ksh106 billion raised from the KPC IPO serves as the foundational seed capital for the National Infrastructure Fund (NIF). This allows the National Treasury to move taxpayer money from a “settled” asset (the pipeline) into “frontier” projects like dams, clean energy, and the SGR extension,” the statement reads.

The department further said the listing is closely linked to the government’s broader development agenda, including the Fourth Medium Term Plan and the Bottom-Up Economic Transformation Agenda.

“The KPC listing is the primary engine driving the Fourth Medium Term Plan (MTP IV) and the Bottom-Up Economic Transformation Agenda (BETA),” the statement reads.

Road construction and water projects

The department also noted that the funds raised will help support key infrastructure priorities such as road construction and water projects aimed at improving livelihoods in rural areas. They added that the success of the KPC listing is expected to translate directly into large national projects, including roads and dams, that will support economic growth and food security.

“The funds unlocked will be immediately deployed into MTP IV priority sectors. This creates a direct link between the stock market success of KPC and the physical construction of 28,000km of roads and 1,250+ dams, directly impacting rural economies and food security (the core of BETA),” the statement reads.

The department also explained that reducing the government’s shareholding in KPC will give the company more independence to upgrade infrastructure and expand fuel and gas distribution. The department added that the move is expected to improve the reliability of fuel supply and reduce logistical inefficiencies that often increase costs for consumers.

“By reducing the government’s stake to 35%, KPC gains the corporate autonomy to upgrade its ageing infrastructure and expand LPG distribution. Energy Security: More reliable fuel and gas supply,” the statement reads.

They added that efficiency gains within a privatised company could eventually reduce operational leakages and lower the cost of fuel distribution across the country. The department concluded by describing privatisation as a key step in the country’s long-term economic transformation.

“Lower Costs: Efficiency gains in a privatised KPC lead to reduced “leakage” and lower logistical costs, eventually trickling down to the pump and the kitchen. Privatisation is the bridge between our history of state-led growth and our future as a first-world, market-driven economy,” the statement reads.