Kenya’s National Treasury plans to privatise 11 state-owned Kenyan companies, among which the National Oil Corporation of Kenya (NOCK) and the Kenya Pipeline Company (KPC). According to the Treasury, the privatisation and restructuring of the firms is expected to help the government raise additional revenue, cut demand for government resources by the firms, improve the country’s regulatory environment, and encourage private sector participation in the economy.
The Treasury has said NOCK has been unprofitable despite a competitive market and that the privatisation would allow NOCK to attract private sector capital investments and expertise. As for KPC, privatisation would improve efficiency and competition, as well as offer a good opportunity for expansion of the oil and gas pipeline infrastructure to unserved regions of Kenya. The Kenyan public has until 11 December 2023 to submit recommendations on the planned sale.
NOCK, currently 100% state-owned, is involved in all aspects of the hydrocarbon supply chain covering the upstream oil and gas exploration, and downstream marketing of petroleum products. KPC, also currently fully state-owned, provides transport, storage and oil pipeline services. It operated three oil product pipelines in the country totalling 420 kb/d and running for nearly 900 km.
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