BUSINESS

KPC Cleared for Privatisation, Sets Stage for 2026 NSE Debut

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KPC storage facilities
KPC storage facilities
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Kenya Pipeline Company (KPC) is officially heading to the stock market in what could become one of Kenya’s biggest and most transformative privatisation moves. The government has cleared the way for the company’s shares to be listed on the Nairobi Securities Exchange (NSE) by March 31, 2026, a milestone that signals a new chapter for one of the country’s most strategic corporations.

The announcement was made on October 9, 2025, by the Privatisation Commission and shared by NSE PLC. It follows the Cabinet’s approval of the privatisation plan and Parliament’s endorsement of the Sessional Paper on October 1, 2025, under the Privatisation Act, 2005. Privatisation Commission Chairman Faisal Abass confirmed the timeline, saying, “The expected closing date for the transaction is 31st March 2026.”

KPC, founded in 1973 and fully owned by the government, has long played a critical role in Kenya’s economy by ensuring a steady fuel supply across the region. Its pipeline network moves Motor Spirit Premium (MSP), Automotive Gas Oil (AGO), Jet A-1, and illuminating Kerosene (IK) across Kenya and to neighbouring countries, including Uganda, Rwanda, Burundi, northern Tanzania, the eastern Democratic Republic of Congo, and southern Sudan.

“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.”

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For decades, KPC has been a government cash cow, with 99.9 per cent of its shares held by the National Treasury and 0.1 per cent by the Ministry of Energy and Petroleum.

Now, ordinary Kenyans will have the chance to own a piece of the company through an Initial Public Offer (IPO), a move expected to inject vibrancy into the stock market and open new investment opportunities for citizens.

Economists say the listing could be a game-changer, not only for KPC but for Kenya’s capital market. The sale of shares is expected to raise funds for the 2025/2026 national budget, reduce reliance on government borrowing, and promote accountability through public ownership.

Privatisation is also being seen as part of Kenya’s broader economic reform agenda aimed at liberalising key sectors, improving efficiency, and positioning the country as a regional investment hub.

The NSE described the move as one that will “deepen and broaden the stock market, improve liquidity, and increase investor participation.”

The Privatisation Commission added, “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).”

KPC’s listing is expected to draw massive investor interest given its profitability and regional footprint.

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