Government Assures Kenyans of Stable Fuel Prices Amid KPC Privatisation

In a move aimed at expanding ownership of a key national asset, the Kenyan government has formally launched the Initial Public Offering (IPO) for the Kenya Pipeline Company (KPC), marking the country’s first fully electronic public offer. The listing, which commenced on January 19 and will run until February 19, 2026, is set to be the largest IPO in Kenya's history, expected to raise approximately Ksh106 billion.

The Treasury is offering 65 per cent of KPC's issued ordinary shares to both local and international investors at Ksh9 per share. Despite this significant divestment, the government will retain a 35 per cent stake, ensuring it remains the largest shareholder with considerable influence over corporate decisions.

Addressing widespread public concern, Treasury Cabinet Secretary John Mbadii has firmly dismissed fears that the privatisation will lead to an increase in fuel prices. He assured Kenyans that the costs of petrol, diesel, and kerosene will remain stable, with current prices set at Ksh182.52, Ksh170.47, and Ksh153.78 respectively.

Mbadii emphasised that KPC's role is strictly limited to the transportation of fuel and does not extend to determining retail prices, which are regulated by the Energy and Petroleum Regulatory Authority (EPRA). He highlighted the strength of Kenya's regulatory framework, involving institutions like EPRA, the Competition Authority, the Nairobi Securities Exchange, and the Capital Markets Authority, which collectively ensure strict adherence to pricing regulations and prevent unjustified cost surges.

Furthermore, the Cabinet Secretary clarified that the substantial proceeds from the KPC sale and other parastatal divestments will not be used for government salaries or debt repayment. Instead, 90 per cent of the funds will be directed to the National Infrastructure Fund, aimed at financing critical development projects across the country.

The landmark IPO at the Nairobi Securities Exchange opens a new chapter in Kenya's privatisation programme, inviting public investment into one of the nation's most strategic energy infrastructure companies while the government maintains a guiding stake and regulatory oversight.