High Court Declines to Block Planned Privatisation of Kenya Pipeline Corporation

High Court Declines to Block Planned Privatisation of Kenya Pipeline Corporation

Nairobi, Kenya – The government has secured another legal reprieve after the High Court declined to issue conservatory orders halting the planned privatisation of the Kenya Pipeline Company (KPC).

Delivering his ruling on Monday, February 23, Justice Lawrence Mugambi noted that substantive orders could not be granted at this stage since the matter had already been scheduled for mention. He emphasized the importance of jurisdictional clarity and the need to hear all parties before making a determination.

“The court cannot grant substantive orders at this stage. The petition is scheduled for hearing on March 18, and all parties must be accorded the opportunity to present their case,” Justice Mugambi stated.

The Petition

The case was filed on January 2 by Busia Senator Okiya Omtatah alongside two other petitioners. They challenged the privatisation of KPC and other state-owned enterprises earmarked for sale, arguing that the process was unconstitutional and driven by external pressure.

“This plan is unconstitutional, unlawful, and anti-sovereign. It is not a decision of the people of Kenya, but one driven by external pressure from the International Monetary Fund,” Omtatah claimed in the petition.

The petitioners raised concerns over the lack of public participation, irregular appointments at the Privatisation Commission, and reliance on a Sessional Paper in Parliament rather than substantive legislation. They asked the court to declare the process unconstitutional, quash all decisions and notices, and permanently bar further steps toward privatisation.

Recent Legal Developments

The ruling comes just days after the court dismissed petitions challenging the Privatisation Act, 2025. In a judgment delivered at the Milimani Law Courts, Justice Bahati Mwamuye rejected arguments by civil society organisations that the law undermined parliamentary authority, effectively paving the way for the sale of stakes in state-owned enterprises, including KPC.

Uganda Secures Stake

Following the latest ruling, Uganda announced on Sunday, February 22, that it had formally signed an agreement to acquire a stake in KPC’s initial public offering (IPO).

Uganda’s Minister of Energy and Mineral Development, Ruth Ssentamu, described the investment as strategic for regional energy cooperation.

“By investing in KPC, a key player in regional petroleum transport and storage, Uganda aims to enhance supply chain stability, ensure reliable and affordable fuel imports, and reinforce its strategic position in East Africa’s evolving energy landscape. This move will strengthen regional energy cooperation and safeguard Uganda’s long-term fuel security,” Ssentamu stated.

Government’s Privatisation Plan

The government intends to offer 65 per cent of KPC’s ordinary shares to the public at Ksh 9 per share, inviting both Kenyan and international investors to participate. The sale is projected to raise approximately Ksh 106 billion, making it one of the largest privatisation efforts in Kenya’s history.

Officials argue that the move will unlock capital, improve efficiency, and strengthen the company’s role as a strategic energy infrastructure provider in the region.

Conclusion

As the petition awaits hearing on March 18, the High Court’s refusal to block the privatisation process marks a significant step forward for the government’s economic reform agenda. With Uganda already securing a stake and the IPO expected to attract wide interest, the privatisation of KPC is shaping up to be a landmark development in Kenya’s energy sector.\

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High Court Declines to Block Planned Privatisation of Kenya Pipeline Corporation