Energy and Petroleum Cabinet Secretary Opiyo Wandayi has downplayed concerns that the partial divestment of Kenya Pipeline Company (KPC) could lead to fuel price hike. Speaking before the National Assembly as they examined Sessional Paper No. 2 on KPC’s planned privatization, Wandayi emphasized that existing regulatory frameworks remain intact.
“We believe privatization of the company will not affect the current pricing mechanism, since Energy and Petroleum Regulatory Authority (EPRA) will continue to regulate and monitor all aspects of the petroleum industry, including fair competition, consumer protection, product quality compliance, and equitable access to KPC’s services across regions,” Wandayi stated.
The government plans to sell 65 percent of its stake in KPC, valued at about Sh120 billion, while retaining 35 percent ownership. Through the Initial Public Offering (IPO), the Treasury expects to raise roughly KSh100 billion, with proceeds earmarked to support the 2025/26 national budget.
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Cabinet approved the proposal in July, and final parliamentary approval is expected before September to allow for the company’s listing on the Nairobi Securities Exchange (NSE) within the same month. An Employee Share Ownership Plan will be implemented to give KPC staff an opportunity to buy shares ahead of the IPO.
The planned listing is set to be one of the largest in recent years and is part of a wider government strategy to boost capital markets, improve corporate governance, and expand public participation in state-owned enterprises.
By Benedict Aoya
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