Privatization Commission Issues Notice Regarding the Sale of Kenya Pipeline


The Privatization Commission has released an official notice outlining the government's intention to sell its 65 percent ownership in the Kenya Pipeline Company (KPC).

  This action comes after receiving approvals from the National Assembly, the National Treasury, and the Cabinet, marking a significant advancement in the state's comprehensive privatization strategy aimed at generating revenue and enhancing efficiency within public enterprises. In accordance with the Privatization Act of 2005, the Commission is required to issue a notice following the approval of any privatization initiative. "In light of the Cabinet's endorsement of the Privatization Method for the Kenya Pipeline Company (KPC) Limited, and its subsequent approval by the National Assembly on October 1, 2025, the Privatization Commission hereby announces the sanctioned transaction," stated the Commission. The Commission emphasized that this sale will enable ordinary Kenyans to gain ownership in one of the nation’s most lucrative and strategically important enterprises. "This initiative will empower ordinary Kenyans to hold a stake in one of the country’s profitable and strategic enterprises, foster inclusive economic growth, and enhance transparency and corporate governance through a stock exchange listing and regulatory oversight," the notice further elaborated. Government forecasts suggest that the divestment could generate approximately Sh100 billion, offering essential fiscal support to mitigate budget deficits. The approval, as detailed in Sessional Paper No. 2 of 2025, specifies that the government will maintain a 35 percent shareholding in KPC, with the remaining shares anticipated to be made available to the public via a stock market listing. Treasury Cabinet Secretary John Mbadi has previously advocated for the initiative, asserting that it would significantly increase state revenues from KPC while drawing in professional management and enhancing governance standards. "This represents an opportunity to unlock value, enhance performance, and ensure that Kenyans directly reap the benefits from KPC's success," Mbadi remarked.

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