Kenya is moving ahead with plans to launch a major Initial Public Offering (IPO) for the Kenya Pipeline Company (KPC), offering up to a 65% stake on the Nairobi Securities Exchange (NSE) as part of a comprehensive privatisation initiative. 

The move, outlined in Sessional Paper No. 2 of 2025, aims to raise crucial funds to support the nation's 2025/2026 budget and unlock value from strategic state assets, with the government retaining a 35% shareholding to maintain influence in the national energy sector.

According to a memo accompanying the sessional paper, listing KPC will deepen Kenya's capital markets, attract new investment, and improve corporate governance. The IPO is a key component of a broader plan to generate approximately $1.15 billion (KES 149 billion) from asset sales. 

With the Pipeline IPO deadline set for launch by September 2025, the government aims to replicate the success of previous listings, such as Safaricom, KenGen, and Kenya Commercial Bank (KCB), which have combined private sector efficiency with public oversight.

KPC is a critical player in East Africa's energy supply chain, operating a 1,700-kilometre pipeline network and handling over 90% of petroleum products destined for Uganda. 

The company has recently undergone significant infrastructure upgrades, including the expansion of storage at Port Reitz and the installation of a new AGO tank in Kisumu, to enhance operational efficiency.

KPC’s proposed sale also includes plans to reduce the government's stake in Safaricom through a secondary IPO or block sale. In line with the constitutional requirement for public participation, Kenyans have been invited to submit written memoranda on the KPC proposal by Aug. 13. 

The privatisation framework outlines that the IPO will mobilise capital without increasing debt and empower citizens to own shares in a profitable national enterprise.