Kenya Pipeline Company (KPC) will operate under strict limitations once it is privatized, after Members of Parliament approved a framework outlining tough oversight measures to safeguard national energy interests.
The National Assembly resolved that the company will only be allowed to transport and store petroleum products, while any future plans to import or sell fuel must first secure approval from regulators and Parliament.
A schedule attached to the Sessional Paper on KPC’s privatization states: “Kenya Pipeline Company Limited shall not venture into the importation or sale of petroleum products without prior approval from the Competition Authority of Kenya (CAK), Energy and Petroleum Regulatory Authority (EPRA), and the National Assembly.”
The House endorsed the Sessional Paper last week, giving the government the green light to offload part of its stake in the company while retaining at least 35% ownership.
Treasury hopes to raise about Ksh100 billion through an initial public offering (IPO) at the Nairobi Securities Exchange, with proceeds directed toward development projects, pending bills, and public debt management.
To ensure transparency, MPs directed that a full valuation of KPC’s assets and financial health be conducted and tabled before Parliament prior to the IPO. The valuation will also be included in the prospectus in a simplified version for public access.
“This should also take into account the future potential of the business in compliance with section 31 of the Privatization Act, 2005,” reads the resolution.
Lawmakers further demanded clarity on the valuation and integration of Kenya Petroleum Refineries Limited, a KPC subsidiary, into the sale process.
The Auditor-General has been instructed to review the entire privatization process, confirm value for money, and submit a report to Parliament within six months of completion.
KPC employees will also be considered through an employee share ownership scheme, ensuring they benefit from the company’s transition.
Additionally, the Privatization Commission has been directed to set a maximum shareholding limit for any single investor or related entities to prevent ownership concentration and protect Kenya’s energy sovereignty.
MPs also want a portion of shares reserved for ordinary Kenyans, including youth, women, and persons with disabilities, to promote inclusivity and broad-based local ownership.
All transaction advisers for the process must be selected through open and competitive procurement, with costs capped at KSh100 million unless otherwise approved by the Treasury.






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