Treasury Formally Receives Ksh 103B From Kenya Pipeline Company Sale

Treasury Formally Receives Ksh 103B From Kenya Pipeline Company Sale

The National Treasury has officially receivedKsh103.45 billion in proceeds from the partial sale of Kenya Pipeline Company (KPC), marking a significant milestone in the country’s ongoing privatisation programme.

The funds were formally handed over by the Privatisation Authority of Kenya during a ceremony that underscored the government’s push to unlock value from state-owned enterprises and broaden investment opportunities.

“We are marking another momentous event today, where our board of directors officially hands over the proceeds from the KPC IPO to the Treasury,” the Authority stated.

The transaction followed Kenya’s first-ever electronic Initial Public Offering (eIPO), which saw a 65 per cent stake in KPC sold to a mix of local and regional investors. The offering has been widely described as a landmark in modernising the country’s capital markets and expanding public participation in state assets.

“It has been a great journey that led to the success of the first ever eIPO, and we are looking to a more diverse and shareable future,” the Authority added.

Receiving the funds, Treasury Cabinet Secretary John Mbadi said the milestone reflects the government’s commitment to transparency, accountability, and prudent management of public resources.

“In the spirit of transparency, openness and accountability of public resources, I am very delighted to receive the dummy cheque representing the total proceeds of the KPC IPO deposited in the National Infrastructure Fund account,” Mbadi said.

The handover came shortly after the Treasury formally revoked KPC’s status as a National Government Entity under the Public Finance Management Act. In a gazette notice issued on April 22, Mbadi confirmed that the company would no longer be classified as a state corporation following the successful partial divestiture.

“In exercise of the powers conferred by section 4(1) of the Public Finance Management Act… the Cabinet Secretary revokes the declaration of Kenya Pipeline Company as a National Government Entity,” the notice stated.

Despite the sale, the government has retained a 35 per cent stake in KPC, ensuring continued strategic influence in the company’s operations. A significant portion of the shares on offer was taken up by Kenyan investors, reflecting strong domestic participation. Regional interest was also evident, with investors from Uganda and Rwanda acquiring stakes in the company.

Officials say the funds will be channelled into the National Infrastructure Fund (NIF), a financing vehicle aimed at supporting large-scale development projects across the country. The initiative is part of broader efforts to accelerate economic growth and modernise critical infrastructure.

Among the flagship projects earmarked for funding is the expansion and modernisation of Jomo Kenyatta International Airport, with construction expected to commence in June. The project is anticipated to enhance Kenya’s position as a regional transport hub while boosting trade and tourism.

Analysts note that the successful execution of the eIPO signals increasing investor confidence in Kenya’s economic reforms and capital markets. It also reflects a shift towards leveraging private capital to finance public infrastructure, reducing reliance on external borrowing.

However, some observers have called for sustained transparency in the utilisation of the funds, emphasising the importance of accountability in ensuring that proceeds from privatisation deliver tangible benefits to citizens.

The KPC transaction is expected to serve as a model for future privatisation initiatives, as the government explores additional opportunities to restructure and partially divest from other state-owned enterprises.

As the funds are now secured, attention turns to the implementation of infrastructure projects and the long-term impact of the privatisation programme on Kenya’s economic landscape.

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Treasury Formally Receives Ksh 103B From Kenya Pipeline Company Sale