President William Ruto has pointed to recent changes in Kenya Pipeline Company’s ownership as evidence that the government is opening strategic businesses to private investment, following a multibillion-shilling share transfer on the Nairobi Securities Exchange.
The deal involved 4.5 billion shares in KPC, valued at about Sh42 billion, changing hands between public entities and private investors. The transaction represents roughly a quarter of the company’s issued shares, marking a significant shift in ownership of one of Kenya’s key energy infrastructure firms.
Ruto addressed the transaction during Mashujaa Day celebrations in Eldoret, Uasin Gishu County, on Tuesday, October 20, arguing that private investment would help finance projects needed to support economic growth.
“Just yesterday, in a demonstration of confidence in our growing capital markets, private investors acquired a 25 per cent stake in Kenya Pipeline from public entities, marking another step in mobilising private capital for strategic infrastructure,” he said.
The President added that the development would strengthen the energy industry, attract investment and create opportunities for businesses.
The transaction was conducted through the Nairobi Securities Exchange’s block trading platform, which enables investors to buy or sell large quantities of shares in a single deal. Rock Investment Bank handled the sale, while KCB Capital represented the purchasing client. The identities of the ultimate buyers and sellers were not immediately disclosed in the reported transaction details.
The transfer follows KPC’s entry into the stock market on March 9, 2026, after a government-backed initial public offering (IPO) raised approximately Ksh 112 billion. The offer exceeded its initial fundraising target of Ksh 106 billion, reflecting demand for shares in the petroleum infrastructure company.
The listing was part of the government’s efforts to widen public participation in State-linked enterprises while raising funds for development projects. It also gave investors an opportunity to acquire a stake in a company responsible for transporting and storing petroleum products used in Kenya and neighbouring countries.
However, the latest transaction raises questions about the changing ownership structure of KPC, particularly because the shares involved represent a substantial interest in the company.
The transfer also comes as the government seeks to attract more private capital to infrastructure projects amid competing demands on public finances. Bringing private investors into strategic businesses can provide access to additional funding, although the impact depends on how the investments are structured and how the proceeds are used.
Ruto did not name the investors involved or disclose further details about the transaction during his address.
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