The Kenya Pipeline Company (KPC) has officially received approval for privatization, paving the way for its shares to be listed on the Nairobi Securities Exchange (NSE) by March 31, 2026.

The announcement was made on October 9, 2025, by the Privatisation Commission and shared by NSE PLC. This milestone follows Cabinet approval of the privatisation method and the endorsement of the requisite Sessional Paper by the National Assembly on October 1, 2025, in line with the Privatisation Act, 2005.

Privatisation Commission Chairman Faisal Abass confirmed that the expected transaction closing date is March 31, 2026. “The expected closing date for the transaction is 31st March 2026.”

KPC’s role and ownership structure

Incorporated on September 6, 1973, under the Companies Act (Cap 486), KPC began commercial operations in 1978. The company specializes in the safe transportation of petroleum products, including Motor Spirit Premium (MSP), Automotive Gas Oil (AGO), Jet A-1, and illuminating Kerosene (IK).

“KPC’s core business is to safely and efficiently transport Motor Spirit Premium (MSP), Automotive Gas Oil (AGO), Jet A-1, and illuminating Kerosene (IK). As such, KPC plays a critical role in fostering development and growth in the region by ensuring a sufficient and reliable supply of petroleum products.”

Its pipeline system serves Kenya and neighboring countries such as Uganda, Rwanda, the eastern Democratic Republic of Congo, northern Tanzania, Burundi, and southern Sudan.

Currently, KPC is wholly owned by the Government of Kenya, with 99.9 percent of shares held by the National Treasury and 0.1 percent by the Ministry of Energy and Petroleum. Privatisation will transform ownership, offering ordinary Kenyans a chance to invest in a strategic and profitable enterprise while strengthening transparency and corporate governance.

Objectives of the privatisation

The initiative is aimed at unlocking KPC’s full potential, raising funds for the 2025/2026 national budget, and supporting economic and social objectives.

The process is designed to enhance operational efficiency, promote innovation, and reduce reliance on government borrowing. Additionally, the listing is expected to broaden Kenya’s capital market, attract local and international investors, and empower citizens to participate in wealth creation.

Market and economic impact

NSE PLC highlighted that KPC’s listing will deepen and broaden the stock market, improve liquidity, and increase investor participation. The privatisation is viewed as part of Kenya’s broader economic liberalisation strategy, positioning the country as a regional investment hub.

“In compliance with Section 25 (a) of the Privatisation Act, 2005, the National Assembly has approved the privatisation of Kenya Pipeline Company (KPC) Limited through an Initial Public Offer (IPO) of shares on the Nairobi Securities Exchange (NSE).”