BUSINESS

Ruto Confirms Kenya Pipeline Company Privatisation Plan Amid Parliamentary Concerns

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President William Ruto
President William Ruto. [Photo/PCS]
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Kenya’s plan to privatise the Kenya Pipeline Company has once again taken centre stage, this time with President William Ruto confirming that the process is already moving forward. The Head of State announced that preparations to appoint a transaction advisor are well advanced, setting the stage for one of the country’s biggest privatisation efforts in recent years.

Ruto announced Yokohama City, Japan, on Friday, August 22, 2025, while attending the 9th Tokyo International Conference on African Development. He explained that the government will continue to list more state-owned corporations on the Nairobi Securities Exchange in order to expand public participation, improve accountability, and boost performance.

“The government will increasingly divest from state corporations through the Nairobi Securities Exchange so that more Kenyans can own a part of the successful companies, inject private sector governance, and make them much more profitable than they are now,” Ruto said.

He added that Safaricom and Kenya Commercial Bank are prime examples of how listing state firms at the stock market can create wealth and deliver long-term benefits for the public. “Kenya Pipeline Company is next in line, and plans are at an advanced stage to begin the search for a transaction advisor. The experience with the privatisation of the Kenya Commercial Bank and Safaricom has proven that there is value in going in this direction,” Ruto said.

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The President’s remarks followed a meeting with International Finance Corporation Managing Director Mokhtar Diop. He praised the IFC for its role in driving private sector growth across Africa, adding that Kenya values its strong ties with the World Bank Group.

“Met International Finance Corporation (IFC) Managing Director Mokhtar Diop, Yokohama City, Japan. We expressed our satisfaction with the excellent relationship between Kenya and the World Bank Group. IFC is the Bank’s development institution focusing on the private sector,” Ruto said.

Despite the government’s commitment, Members of Parliament have raised sharp concerns over the planned sale of KPC.

The Joint Committee on Energy and the Committee on Public Debt and Privatisation held a sitting on Tuesday, August 12, 2025, where lawmakers questioned why a profit-making parastatal should be put up for privatisation.

The committees, led by Nakuru East MP David Gikaria and legislator Abdi Shurie, warned that the process lacked transparency.

Under the current plan, the National Treasury would hold on to 35 per cent of KPC while offering the remaining 65 per cent to the public through the NSE.

As the government pushes for greater public ownership of state corporations, Parliament is demanding more openness in the process. The outcome of this standoff will determine how smoothly the privatisation of KPC proceeds and whether Kenyans will welcome the plan or resist it.

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