Gov't seeks to raise Ksh.120B from sale of 65% Kenya Pipeline stake

President William Ruto says Kenya is targeting Ksh.120 billion by the end of January through the sale of a 65 per cent stake in the Kenya Pipeline Company (KPC).

The President insists the proceeds will be used exclusively for infrastructure development, not debt repayment or recurrent expenditure.

The proposed sale of 65 per cent of the government’s stake in the KPC leaves the State with 35 per cent ownership, marking the latest push by President Ruto’s administration to raise capital through divestiture from State-owned enterprises.

The Kenya Pipeline initial public offering is expected to raise Ksh.120 billion, according to President Ruto, with the offer period running from January 19 to February 19.

The President says all proceeds will be ring-fenced under the National Infrastructure Fund and committed solely to development projects.

“As I have stated, this money will be used solely for infrastructure development. Not a single cent will go into paying debt. Everything will go towards development,” he said.

Earlier this month, the President urged Kenyans to participate in the offer, saying shares would be available from as little as Ksh.200.

The National Treasury plans to channel the funds into key sectors, including energy, roads, water and airports, under the National Infrastructure Fund.

“Cabinet has approved critical policies to establish the Sovereign Wealth Fund and the National Infrastructure Fund. We are convinced that with the right, innovative use of our resources, we can leverage our national assets for development,” Ruto noted.

However, the plan faces a legal challenge. A petition filed by Busia Senator Okiya Omtatah, alongside Bernard Muchiri Muchere and Naomi Nyakerario Misati, is contesting the proposed privatisation of KPC.

The petition argues that the process violates constitutional and statutory requirements, citing a lack of public participation in the decision to divest the State’s stake.

The President made the remarks at State House, Nairobi, during the official dispatch of Kenya’s ambassadors and high commissioners to their respective postings.

He urged them to protect Kenya’s national interests and strengthen mutually beneficial international partnerships.