Government Receives KSh 103 Billion from Kenya Pipeline Company Share Sell to Fund Infrastructure
Left to right: Privatization Authority Board Director, Irene Wanyoike and Privatization Authority Acting Managing Director, Dr. Jane Rose Omondi hand over a cheque of KShs. 103.454 billion to the National Treasury Cabinet Secretary, Hon. FCPA John Mbadi and the Principal Secretary in the State Department for Public Investment and Assets Management, Mr. Cyrell Wagunda.
Nairobi, Kenya — The Privatization Authority (PA) has officially remitted KSh 103.454 billion to the National Treasury, marking the successful conclusion of the Government’s 65 percent divestiture from the Kenya Pipeline Company (KPC).
The landmark transaction, the largest of its kind under the Privatization Act of 2025, signals a decisive shift toward market-led financing for Kenya’s primary development goals.
The proceeds have been moved into the newly created National Infrastructure Fund (NIF), where they will serve as ring-fenced seed capital for strategic projects in the roads, energy, transport, and water sectors.
Speaking during the handover ceremony in Nairobi, National Treasury and Economic Planning Cabinet Secretary, FCPA John Mbadi, termed the move a “defining moment” for Kenya’s fiscal health.
“Today’s exercise marks the official close of the KPC IPO and a significant milestone in the operationalization of the National Infrastructure Fund . It demonstrates how the government can prudently manage public assets to finance development in an era of constrained fiscal space.” Cs Mbadi stated.
The CS further noted that the NIF would act as a catalyst for private investment, reducing the burden on the taxpayer.
“The Fund shall be our primary vehicle for financing commercially viable infrastructure by unlocking large-scale private sector capital. This allows us to fund national priorities while actively reducing our reliance on debt and taxation,” he added.
The KPC IPO involved the sale of 11.8 billion shares at KSh 9.00 per share. It set a technological milestone as the country’s first-ever fully electronic public offering, with 100 percent of applications processed digitally.
Representing the Privatization Authority Board, Director Irene Wanyoike attributed the success of the offer to the robust legal framework provided by the new Privatization Act. She emphasized that the transaction was executed with a high level of technical precision and market discipline.
“The journey from the opening of the subscription period to today’s cheque handover was defined by rigorous coordination and consistent engagement with the market at every stage,” Ms. Wanyoike noted.
Highlighting the impact on governance, the Director added that the successful divestiture has set a high standard for future state-owned enterprise reforms.
“By adhering to these strict processes, we have strengthened transparency, accountability, and public confidence in the management and strategic divestiture of government assets,” she said.
Despite the sale, the Government of Kenya retains a 35 percent anchor stake in KPC. The new shareholding structure now includes institutional investors at 41 percent and East African Community (EAC) investors at 21.22 percent.
Retail investors, foreign entities, and KPC employees hold the remaining shares.As KPC Plc transitions into its new corporate structure, it is expected to maintain its strategic role as a regional energy hub, ensuring the safe and efficient movement of petroleum products across the East African hinterland.
The Privatization Authority maintains that this success reinforces Kenya’s long-term strategy of using capital markets to bridge the infrastructure gap and foster sustainable economic growth.
