Mbadi revokes Kenya Pipeline’s status after successful IPO listing
By Kenneth Mwenda, April 23, 2026The National Treasury has formally removed Kenya Pipeline Company (KPC) from the list of national government entities following the completion of its privatisation through an Initial Public Offer (IPO).
In a legal notice dated April 22, 2026, Treasury Cabinet Secretary John Mbadi revoked KPC’s designation under the Public Finance Management Act.
“In exercise of the powers conferred by section 4 (1) of the Public Finance Management Act, as read with regulation 211 (7) of the Public Finance Management (National Government) Regulations, the Cabinet Secretary for the National Treasury revokes the declaration of Kenya Pipeline Company as a national government entity,” the notice states.
The decision marks the final legal step in the company’s transition from full state ownership to a mixed-ownership commercial entity. The move follows the successful privatisation of KPC through the sale of a 65 per cent stake to the public and institutional investors.
A separate gazette notice confirmed that the privatisation process had been completed under the Privatisation Act, 2025. The notice, issued by the Privatisation Authority Acting Chief Executive Officer Jane Rose Omondi, stated:
“It is notified for the general information of the public that the privatisation of Kenya Pipeline Company Limited (now known as Kenya Pipeline Company PLC) has been finalised.”
KPC completes market listing
KPC was listed on the Main Investment Market Segment of the Nairobi Securities Exchange on March 10, 2026, after its Initial Public Offer. The government now retains a 35 per cent shareholding in the company through the National Treasury.
The company was originally incorporated in 1973 and began operations in 1978. It was converted into a public limited company in January 2026 in preparation for listing.
According to the gazette notice, KPC operates a strategic network of pipelines, storage depots and terminals that transport petroleum products across Kenya and the East African region. The government said the firm remains central to regional energy supply and economic activity despite the ownership changes.
The revocation means KPC no longer falls under the financial oversight framework that applies to state corporations. It will now operate fully as a listed commercial company, governed under capital markets rules rather than public finance regulations.
Treasury CS John Mbadi defended the process, saying it followed all legal requirements under the Public Finance Management Act, the Capital Markets Act and the Capital Markets (Public Offers, Listing and Disclosure) Regulations. He also said the IPO was structured to widen ownership and improve efficiency in management.
The IPO involved the sale of 11.81 billion shares at Ksh 9.00 each. All proceeds from the sale went directly to the Exchequer, as no new shares were issued.
The listing marks one of the most significant shifts in Kenya’s state-owned enterprises policy in recent years, reducing direct government control over a key infrastructure company while retaining a minority stake.