The High Court in Nairobi has temporarily blocked the planned sale of the Kenya Pipeline Company (KPC) following a petition filed by the Consumers Federation of Kenya (COFEK).
Justice Bahati Mwamuye issued conservatory orders on Friday morning, effectively blocking the government from selling, transferring, or dealing with KPC shares until the petition is heard and determined.
“Pending the inter partes hearing and determination of the petitioner’s notice of motion application dated August 14, 2025, a conservatory order be and is hereby issued restraining the respondents and the interested parties, jointly and severally, and whether by themselves or through their agents, servants, or any person acting under their authority, from offering for sale, allocating, disposing, transferring, or otherwise dealing with any shares of the Kenya Pipeline Company Limited pursuant to the impugned privatisation plan that is the subject of the petition herein,” the ruling read.
The court’s decision comes after the Cabinet, on July 29, 2025, approved the reinstatement of KPC into the privatization program. The government had planned to sell a portion of the company’s shares through an Initial Public Offering (IPO) on the Nairobi Securities Exchange (NSE) to raise an estimated Sh100 billion to fund its budget and reduce reliance on borrowing.
The government argued that privatizing KPC would attract private capital and expertise, leading to improved efficiency and growth for the company, similar to the past successes of privatized entities like Safaricom, KCB, and KenGen. However, the petition raises concerns about the privatization of a profitable and strategically important state company, arguing that the move is not in the public interest.
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