Treasury Removes KPC from State Entities List After Landmark Public Share Sale

The National Treasury has formally removed Kenya Pipeline Company (KPC) from the list of national government entities following the completion of its privatisation through an Initial Public Offer (IPO).

In a legal notice dated April 22, 2026, Treasury Cabinet Secretary John Mbadi revoked KPC’s designation under the Public Finance Management Act.

“In exercise of the powers conferred by section 4 (1) of the Public Finance Management Act, as read with regulation 211 (7) of the Public Finance Management (National Government) Regulations, the Cabinet Secretary for the National Treasury revokes the declaration of Kenya Pipeline Company as a national government entity,” the notice states.

The decision marks the final legal step in the company’s transition from full state ownership to a mixed-ownership commercial entity.

It effectively ends KPC’s classification as a state corporation, placing it firmly under a new operational and governance framework aligned with publicly listed companies.

The move follows the successful privatisation of KPC through the sale of a 65 per cent stake to the public and institutional investors.

The government, which previously held full ownership, has now significantly reduced its shareholding, opening up the company to broader market participation and private capital.

This transition is expected to usher in changes in how the company is managed, including stricter corporate governance standards, enhanced transparency, and increased accountability to shareholders.

Analysts say the shift could also improve operational efficiency, as the company adopts a more commercially driven approach.

KPC has long been a strategic player in Kenya’s energy sector, responsible for the transportation and storage of petroleum products across the country and the wider region.

Its privatisation was seen as a key step in the government’s broader plan to reduce its role in commercial enterprises while attracting private investment to drive growth.

The revocation of its status as a national government entity also means that KPC will no longer be subject to certain public sector controls and financial regulations that govern state corporations.

Instead, it will operate under frameworks applicable to private and publicly traded firms, including compliance with capital markets regulations and oversight by relevant industry regulators.