President William Ruto of Kenya has announced that the Kenya Pipeline Company (KPC) will be listed on the Nairobi Securities Exchange (NSE) in September 2025, marking the first step in the country’s renewed effort to privatise key government-owned businesses. This move is part of a wider plan by the Kenyan government to generate fresh revenue, cut down inefficiencies, and revive investor confidence in the local capital markets.
The President made this announcement during a bell-ringing event at the Nairobi Securities Exchange to celebrate the successful listing of Linzi Finco 003 Infrastructure Asset-Backed Security. He said the time had come for Kenya to embrace full-scale privatisation, stating clearly that “privatization is no longer optional.”
President Ruto explained that the Cabinet would approve the KPC Initial Public Offering (IPO) before the end of July 2025, after which it will be sent to the National Assembly for final approval. Once the IPO is approved, KPC will become the first state-owned company in over ten years to be privatised through the stock market.
KPC’s listing is expected to help the company raise new capital for expansion across East Africa and to support its move into the liquefied petroleum gas (LPG) business. The President said that privatisation is necessary to improve performance in government-owned enterprises and ensure they are run with higher standards of accountability and transparency.
He noted that public companies would soon be required to disclose their financial and operational data using a standardised format, in line with capital market expectations. After one year of such disclosures, the companies will be mandated to list at least 20 percent of their equity on the NSE.
According to Ruto, “There is compelling evidence that privatisation is necessary to eliminate inefficiencies and raise the standards of governance in our public enterprises.”
In addition to KPC, the Kenyan government is also preparing other state-owned companies for privatisation. These include National Oil Corporation, New Kenya Cooperative Creameries (NKCC), Kenya Literature Bureau (KLB), and Rivatex East Africa Limited (REAL). However, past attempts to privatise these firms have faced delays caused by legal disputes, political resistance, and issues concerning the fair valuation of assets.
The President’s speech came just after the listing of Linzi FinCo 003 Trust’s Infrastructure Asset-Backed Security on the NSE. The bond is backed by future revenue from Talanta Sports City Stadium, a 60,000-seater facility currently under construction. This stadium is expected to be one of the key venues for the 2027 Africa Cup of Nations (AFCON), which Kenya is hoping to co-host.
Linzi FinCo 003’s security was rated AA(KE)(IR) with a stable outlook by GCR Ratings, a South African-based credit rating agency. The 15-year secured note will help raise funds to support the development of the stadium and other related infrastructure projects.
The President said the success of the Linzi 003 listing has shown that the market is ready to absorb structured financial products, and the government will continue to use similar tools to fund major projects without putting pressure on public finances.
He also said the government wants to revive interest in Kenya’s capital markets, which have struggled with low investor confidence and limited activity in recent years. By encouraging state-owned companies to list, the government hopes to bring in more investors, improve transparency, and reduce reliance on public borrowing.
The government believes that these listings will send a strong signal to investors across the region that Kenya is committed to open and transparent economic management. With the privatisation programme now gaining speed, financial analysts will be watching closely to see how the markets react and whether the country’s capital market reforms can deliver the expected benefits.
