The Kenyan government has approved the partial privatisation of the 100% state-owned Kenya Pipeline Company (KPC), marking a key step in its broader effort to reduce public expenditure on state-owned enterprises. The KPC is responsible for the transportation, storage, and distribution of petroleum products in Kenya, operating over 1,300 km of pipelines able to transport about 14 billion litres of oil products. The privatization of KPC is also planned under the Privatisation Act (2023). Under the plan, a portion of the government’s shares in KPC will be sold to private investors, and the company will be listed on the Nairobi Securities Exchange (NSE) by September 2025.
This decision reflects a major policy shift away from state dominance in commercial enterprises toward private-sector-led growth. The government has justified the move by highlighting the need to attract professional expertise and improve operational efficiency within the company, raising funds for regional expansion and diversification into products such as LPG. The National Oil Corporation (NOC) may also be privatised soon.