Why Ruto Is Rushing to Privatize Kenya Pipeline
The Kenyan government has launched one of its most ambitious privatization programs in over a decade, and at the center of it is the Kenya Pipeline Company (KPC). As one of the most profitable parastatals in the energy sector, KPC controls the storage and transportation of petroleum products across the country. The company’s strategic importance in energy security and economic stability makes its planned privatization a matter of both national interest and public scrutiny.
The Big Move
In July 2025, President William Ruto’s cabinet approved a proposal to sell up to 65% of KPC to private investors through an Initial Public Offering (IPO) at the Nairobi Securities Exchange (NSE). The sale is expected to happen by October 2025, and would mark one of the largest privatizations since the Safaricom IPO in 2008.
According to the Cabinet statement, the government intends to retain 35% ownership, ensuring that it remains a key shareholder but cedes majority control to private hands. The move has triggered a national conversation on the risks and opportunities that such privatization may bring.
Why KPC?
KPC reported KSh 80.6 billion in revenue for the 2023/2024 financial year, with a net profit of KSh 15.2 billion. It operates a network of pipelines stretching from Mombasa to Eldoret and Kisumu, and handles over 90% of petroleum product movement in the country.
With Kenya seeking to reduce its rising public debt—currently estimated at KSh 11.2 trillion as of mid-2025—the government has identified parastatal privatization as a way to inject fresh capital into the economy, attract foreign investors, and reduce reliance on loans.
Strategic Motivation
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Debt pressure: Kenya has several Eurobond repayments due between 2025–2028, and freeing up public resources is a key motivation.
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IMF and World Bank conditions: Both lenders have encouraged Kenya to pursue fiscal discipline and reduce state participation in commercial enterprises.
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Infrastructure investment: Funds raised may be channeled into priority infrastructure, including roads, education, and healthcare.
Political Underpinnings
The move has stirred political waters. While the government cites economic efficiency and investor confidence, critics suggest there are hidden interests behind the push. Allegations of political elites positioning themselves to benefit from the sale have surfaced—though no verifiable evidence links any sitting or former politicians directly to KPC acquisition plans.
Online claims suggest:
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President Ruto owns Stabex International (No public record supports this claim.)
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Kenyatta family controls Rubis (Rubis is a French multinational that bought KenolKobil.)
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Raila Odinga owns a gas company (He is linked to East Africa Spectre, which manufactures gas cylinders, not a distributor.)
Public Sentiment
Kenyans on social media have expressed mixed reactions. Some view the IPO as a chance to participate in a national asset, while others fear that KPC could follow the route of other privatized entities that failed to improve efficiency or transparency.
Global Context
Privatization isn’t unique to Kenya. Countries like Nigeria, Egypt, and South Africa have pursued similar strategies with mixed outcomes. The success or failure depends on how transparent the process is, who the buyers are, and whether the government enforces accountability post-sale.
What Happens Next?
If the IPO goes forward:
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Shares may be floated on the NSE by Q4 2025
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Strategic investors (local or international) may acquire bulk stakes
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The government will remain a minority shareholder
Final Thought
The privatization of KPC is more than a fiscal tool—it’s a test of Kenya’s ability to balance economic reform with public trust. The outcome will shape future privatizations and the credibility of the Ruto administration’s economic plan.
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