The National Treasury has officially removed Kenya Pipeline Company (KPC) from the list of state entities, marking a major policy shift in the management of key public assets in Kenya.
Cabinet Secretary John Mbadi signed the legal notice on April 22, 2026, revoking KPC’s status as a National Government Entity under the Public Finance Management Act through a special gazette notice issued this week.
The notice, issued under the Public Finance Management Act and accompanying regulations, formally cancels KPC’s inclusion in the Schedule of National Government Entities, effectively ending its classification as a fully state-owned enterprise.
The decision follows the successful completion of KPC’s Initial Public Offering on the Nairobi Securities Exchange, where the government sold a 65 per cent stake to Kenyan citizens and institutional investors across the country.
Trading of KPC shares on the Main Investment Market Segment of the NSE began on March 10, 2026, signalling the company’s transition into a publicly traded firm after decades of state monopoly ownership.
Following the IPO, the government now retains a 35 per cent shareholding in the company, down from full ownership since its establishment in 1973, reflecting a significant shift in state participation.
Since its founding in 1973, KPC has operated as a strategic state corporation responsible for transporting petroleum products across the region, playing a key role in Kenya’s energy and logistics infrastructure.
Despite the ownership change, the company’s core mandate remains unchanged, focusing on the efficient, safe, and cost-effective transportation of petroleum products within Kenya and the wider East African region.
The move is expected to enhance efficiency, broaden investor participation, and deepen capital markets, although it also raises questions about government control over critical infrastructure in the energy sector.
