William Ruto Announces Govt's Plan to Privatise Kenya Pipeline in 2025 by IPO
- President William Ruto visited the London Stock Exchange and officiated the Market Open ceremony
- Ruto announced plans to privatise key state-owned enterprises, including the Kenya Pipeline Company (KPC), through Initial Public Offerings (IPOs) at the NSE
- Treasury CS John Mbadi had earlier revealed that the government was planning to lift KPC after receiving a KSh 3 billion dividend payout to the National Treasury
Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
London - President William Ruto paid a visit to the London Stock Exchange and gave a speech at the market opening ceremony to signal the start of trading.
Source: Twitter
Ruto highlighted the growing impact and potential of equity markets in financing national development.
He reiterated his commitment to the development of the capital markets and strengthening the Nairobi Securities Exchange (NSE).
"This commitment is underpinned by strategic reforms and refreshed market-focused strategy under the leadership of the new Nairobi Stock Exchange team, supported by fiscal consolidation, effective debt management, and a strong currency. These reforms helped the Nairobi Securities Exchange emerge as Africa's top performer in dollar returns last year," Ruto said.
Will Kenya issue an IPO in 2025?
Ruto further stated that the government is broadening Kenya's stock market appeal to both local and international investors by earmarking key state assets for privatisation through initial public offerings at the NSE.
"We are committed to a structured, time-sensitive program that identifies and prepares a robust pipeline of key government assets to be privatised through the stock exchange or improved through private sector participation. As part of this initiative, we plan to list the Kenya Pipeline Company through an IPO in 2025, offering investors a unique opportunity to deploy capital in one of Kenya's most strategic infrastructure enterprises," President Ruto announced.
Source: Twitter
What is an IPO?
An Initial Public Offering (IPO) in Kenya is the process through which a private company offers its shares to the public for the first time by listing on the NSE.
This will allow ordinary Kenyans, institutional investors, and foreign entities to buy ownership into the Kenya Pipeline Company, making it publicly traded.
The IPO will give the government an avenue to raise capital, improve corporate governance, and broaden ownership, while giving citizens a chance to invest in formerly state-owned enterprises.
Other formerly state-owed companies that were privatised through an IPO include Safaricom, Kenya Airways and Kenya Power.
When did Kenya begin plans to list KPC
Earlier in February 2025, Treasury Cabinet Secretary John Mbadi announced that the government was considering listing KPC on the NSE through an IPO.
This was part of a broader plan to privatise 10 public entities, including KPC and the Kenya Ports Authority.
Mbadi was speaking at the KPC headquarters after receiving a cheque for an interim dividend of KSh 3 billion for the half-year ending December 2024, bringing KPC's total dividend payout to the National Treasury over the past 12 months to KSh 10.5 billion.
The NSE supported Mbadi’s call to list KPC, stating that such privatisation would unlock investment value, deepen capital markets, attract investors, and broaden economic participation across Kenya.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
