Kenya will list its state-owned Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange by the end of January, President William Ruto said, pressing ahead with a privatisation drive aimed at deepening domestic capital markets and reducing reliance on foreign debt.
The listing of KPC, which operates critical petroleum transport and storage infrastructure in Kenya and across East Africa, will be one of the most high-profile initial public offerings in years and a key test of investor appetite for state assets.
Speaking on Monday at a public event in West Pokot county in northwestern Kenya, Ruto said the government wants the share sale to be accessible to ordinary citizens, not just institutional investors.
“We said the shares will be sold to everyone. Even if you only have 200 or 300 shillings, come and buy, so that when profits are announced, you can benefit,” Ruto said, presenting the IPO as a tool for widening wealth ownership.
KPC is regarded as one of Kenya’s most profitable state-owned companies, generating steady revenues from fuel pipelines, depots and storage facilities that serve the domestic market as well as neighbouring countries. Analysts say its strong cash flows make it an attractive candidate for a public listing at a time when the Nairobi bourse has struggled with low liquidity and weak sentiment.
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The president said the flotation forms part of a broader strategy to “unlock the value of public assets, deepen financial markets and ensure that ordinary citizens benefit from the fruits of economic growth.”
While the government will sell a stake to the public, Ruto stressed that the state will retain a significant shareholding to safeguard strategic interests in energy infrastructure, which is considered vital for national security and economic stability.
At the same time, the listing will be open to foreign investors, including from neighbouring East African countries. Ruto said participation by partners such as Uganda would help strengthen regional cooperation in energy transport and storage, as fuel flows increasingly cross borders.
Kenya Pipeline Company plays a central role in supplying petroleum products not only to Kenya but also to landlocked neighbours including Uganda, Rwanda and parts of eastern Democratic Republic of Congo, making it a linchpin of regional energy logistics.
The planned IPO is part of a privatisation agenda Ruto outlined in July 2025, when his administration announced it would pursue partial listings of selected state-owned enterprises to attract private capital and improve efficiency.
Since taking office in August 2022, Ruto has prioritised cutting Kenya’s heavy external debt burden, which ballooned over the past decade as successive governments borrowed heavily to finance infrastructure projects.
Kenya’s public debt stood at around 70 percent of gross domestic product in 2025, according to official figures, raising concerns about debt sustainability and crowding out of private investment.
Ruto’s strategy relies on tapping domestic capital markets, expanding the tax base and securing concessional financing from multilateral lenders, rather than issuing costly Eurobonds or relying on bilateral loans.
This marks a shift from the approach taken under former president Uhuru Kenyatta, whose administration turned frequently to international markets and Chinese financing to fund highways, railways and energy projects.
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While those investments transformed parts of Kenya’s infrastructure, they also left the country exposed to currency risk and rising debt-servicing costs, particularly after the shilling weakened and global interest rates climbed.
By contrast, Ruto has cast privatisation through the stock exchange as a way to mobilise local savings, boost transparency and impose market discipline on state-owned firms.
Economists say the success of the KPC listing could set the tone for future offerings, including in sectors such as energy, transport and telecommunications.
However, they caution that investor confidence will depend on clear pricing, strong corporate governance and assurances that political interference will be limited once companies are listed.
There are also questions about market timing. The Nairobi Securities Exchange has seen modest gains in recent months, but turnover remains thin and foreign investors have been net sellers amid global risk aversion and concerns over Kenya’s fiscal position.
Ruto’s emphasis on small retail investors is politically resonant, but analysts note that broad participation will require an aggressive public education campaign and an efficient application process to avoid past problems that discouraged first-time investors.
If successful, the Kenya Pipeline Company IPO could provide a rare boost to the local market, broaden share ownership and signal a new phase in the state’s relationship with capital markets.
For Ruto, it is also a political statement: that selling stakes in profitable public firms, rather than borrowing abroad, is the path he wants Kenya to take as it seeks growth without deeper debt.
