State-owned oil company, Kenya Pipeline Company (KPC), positioned for September stock market debut as part of the government's plan to privatize state enterprises, reportedly announced by Deputy President Ruto.

State-owned oil company, Kenya Pipeline Company (KPC), positioned for September stock market debut as part of the government's plan to privatize state enterprises, reportedly announced by Deputy President Ruto.

In a significant move towards enhancing transparency and investor confidence, President William Ruto has announced a new disclosure and listing framework for State-run companies in Kenya. Under this initiative, public entities will be required to disclose standardized financial and operational data in line with capital market standards.

One of the first companies to adopt this new framework is the Kenya Pipeline Company (KPC), which is expected to list at least 20% of its equity on the Nairobi Securities Exchange (NSE) within a year of the initial disclosure. The Cabinet's approval for KPC's Initial Public Offering (IPO) is expected by the end of July 2025, with the IPO opening in September 2025.

KPC, predominantly owned by the National Treasury, boasts a strong asset base valued at Sh120 billion and reported a profit after tax of Sh6.86 billion for the year ending June 2024, up from Sh4.5 billion in the previous year. The company owns 1,342 kilometers of pipeline infrastructure capable of handling about 14 billion liters of petroleum products.

This structured divestiture program is part of a broader privatisation program aimed at improving transparency and boosting investor participation in Kenya's public enterprises. The reform also aims to promote transparency, improve governance, expand local ownership, and give Kenyans the opportunity to directly participate in the country's economic success.

The National Treasury is also developing a minimum disclosure and listing framework for all Public Interest Entities in Kenya. The Cabinet Secretary for the National Treasury will establish an industry council to guide this process.

Meanwhile, the Talanta Sports Stadium, being built through a Public-Private Partnership (PPP) model, marks the first major sports stadium built in Kenya in nearly four decades. The funds for the stadium were Sh44.7 billion, raised by Linzi Finco Trusts, an affiliate of Liaison Group.

Critics have raised concerns about the privatisation of KPC, citing its strategic importance. However, President Ruto has emphasised the necessity of privatization to eliminate inefficiencies and raise the standards of governance in public enterprises. The government expects more firms to warm up to the idea of PPP projects, following the success of the Nairobi-Expressway project.

This new framework is set to catalyse the privatisation process, enhance transparency, and boost investor participation in Kenya's public enterprises, marking a significant step towards economic growth and development.

1. Under the new disclosure and listing framework, the Kenya Pipeline Company (KPC) - with its strong asset base in real-estate valued at Sh120 billion - will also be expected to disclose standardized financial and operational data for potential investors in the business, finance, and investing sectors.
2. To further propel economic growth and development, the National Treasury is developing a minimum disclosure and listing framework for all Public Interest Entities, which is anticipated to help expand local ownership and promote transparency, especially in the business realm.
3. As the government pushes for improving transparency, boosting investor participation, and reducing inefficiencies in public enterprises, there's a growing sentiment among various enterprises, like real-estate owners and sports organizations, to take on Public-Private Partnership (PPP) projects, as demonstrated by the Talanta Sports Stadium and the Nairobi-Expressway project.

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