President William Ruto has announced plans to list Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange (NSE) via an Initial Public Offering (IPO) in 2025.
This significant move is a key component of the government’s broader strategy to privatize select state-owned enterprises, stimulate economic growth, attract global investment, and deepen the foundational structures of Kenya’s capital markets.
President Ruto emphasized Kenya’s commitment to enhancing investor confidence during his remarks at the ceremonial opening of the London Stock Exchange (LSE). “We have made a strategic decision to broaden Kenya’s stock market appeal to both local and international investors by earmarking key state assets for privatization through IPOs at the NSE,” he stated. This approach aims to create a more vibrant investment climate, thereby attracting foreign direct investment which is essential for local economic development.
Established in 1973 , the primary mission of KPC is to provide an efficient, reliable, safe, and cost-effective means of transporting petroleum products from the port city of Mombasa to the country’s inland areas, which are crucial for industrial and domestic energy needs. To facilitate this, KPC has developed an extensive pipeline network spanning 1,342 kilometers, alongside strategically located storage and loading facilities. This infrastructure is capable of transporting approximately 14 billion liters of petroleum products annually, thus playing a vital role in ensuring energy security for both Kenya and neighboring East African countries.
As a critical player in the transportation and storage of petroleum products, KPC is poised to gain substantially from its forthcoming public listing. This transition will not only provide the company with access to new capital but will also enhance corporate governance and operational efficiency, aligning it with international best practices.
The planned IPO will be conducted in accordance with the framework established by the Privatisation Act, 2023, requiring Cabinet approval and oversight by the Privatisation Authority to ensure adherence to principles of transparency, accountability, and alignment with the public interest.
President Ruto highlighted that the KPC listing will be executed according to a clearly defined, time-sensitive plan to strategically identify and privatize key state assets. If successfully implemented, the IPO will significantly reduce the financial burden on the government while simultaneously fostering private sector participation in infrastructure development, which is crucial for enhancing service delivery across multiple sectors.
Overall, the KPC listing is anticipated to mark a significant milestone in Kenya’s economic reform agenda, serving as a clear signal to potential investors about the country’s readiness to embrace sustainable, market-driven growth and modernization of its economic landscape.
