The High Court of Kenya has dismissed petitions challenging the Privatization Act, 2025, effectively clearing the way for the government to sell stakes in state-owned enterprises like the Kenya Pipeline Company Limited (KPC).
In a judgment delivered at the Milimani Law Courts, Justice Bahati Mwamuye threw out a petition from civil society groups. These organizations had asked the court to strike down the law, arguing it stripped Parliament of its proper authority. The petitioners also claimed the sale was unconstitutional and resulted from pressure by the International Monetary Fund (IMF).
In their legal filings, the groups highlighted KPC as a profitable and strategic public asset. They pointed to 2024 data showing that KPC earned Ksh6.87 billion in profit and paid Ksh7 billion in dividends to the national treasury.
The petitioners argued that selling the company to pay off public debt would breach public finance laws, threatening national sovereignty and energy security.
However, in his ruling, Justice Mwamuye maintained that Parliament holds enough oversight to keep the process in check. He clarified that the law does not grant the Executive unchecked power.
This High Court decision now permits the government to move forward with selling shares in KPC and other essential state-owned companies.
The 11 State-Owned Firms Slated for Sale
Under the Privatization Act of 2025, the government has prioritized a list of 11 strategic entities for divestiture. These firms span across energy, agriculture, and hospitality:
- Kenya Pipeline Company (KPC): The crown jewel of the program, with an active IPO currently underway.
- Kenyatta International Convention Centre (KICC): Nairobi’s iconic landmark.
- New Kenya Co-operative Creameries (New KCC): A major player in the dairy sector.
- Kenya Seed Company Limited: Essential for national food security and agricultural research.
- National Oil Corporation of Kenya (NOCK): Currently facing financial challenges.
- Kenya Literature Bureau (KLB): A profitable state publisher.
- Western Kenya Rice Mills Ltd.: Supporting local rice production.
- Mwea Rice Mills Ltd.: Another key agricultural processor.
- Numerical Machining Complex: An engineering and industrial firm.
- Kenya Vehicle Manufacturers Limited: Aiming to boost the local automotive industry.
- Rivatex East Africa Limited: A textile giant based in Eldoret.
Inside the KPC IPO
The KPC sale is the first major test of this new law. Here is the current landscape of the offering:
- The Offer: The government is offloading a 65% stake (retaining 35%) to raise approximately Ksh100 billion.
- Share Pricing: Shares are priced at Ksh9.00 each, though some market analysts suggest a fair value closer to Ksh4.60 to Ksh6.30.
- Deadline: The subscription window was set to close yesterday, February 19, 2026, with trading on the Nairobi Securities Exchange (NSE) expected to begin in early March.
