The Kenya Pipeline Company (KPC) is set to become the first state-owned enterprise to be listed on the Nairobi Securities Exchange (NSE) in nearly two decades, following President William Ruto’s announcement that the company will go public by September 2025.

This marks a significant milestone in Kenya’s broader strategy to revitalise public enterprises through private sector participation.

Speaking at the NSE bell-ringing ceremony on Wednesday, President Ruto confirmed that Cabinet approval for the KPC divestiture is expected before the end of July, after which the proposal will move to Parliament. “Privatization is no longer optional,” Ruto stated, underscoring the urgency of improving efficiency and governance in state-run corporations.

The planned Initial Public Offering (IPO) is part of a government-led initiative to attract global capital and eliminate inefficiencies that have long plagued public institutions. For KPC, the IPO is expected to unlock funds for regional expansion and diversification into new energy products, including Liquefied Petroleum Gas (LPG).

President Ruto noted that private investment will not only enhance operational performance at KPC but also ensure better corporate governance. The government plans to implement a disclosure regime for state-owned entities, compelling them to publish standardised financial and operational reports in line with capital market requirements.

Additionally, KPC and other state firms will be required to float at least 20 percent of their equity on the NSE within a year of making their first disclosures. The listing is expected to set the pace for future privatisations and reenergise investor interest in Kenya’s energy infrastructure.