According to Ruth Kinyanjui, an Economist and Governance expert based in Kenya, private participation in state-owned enterprises brings efficiency, innovation and accountability, a dynamic that could shape the outcome of the government’s plan to sell a 65% stake in the Kenya Pipeline Company (KPC).
The administration aims to raise about $825 million through an initial public offering (IPO), the country’s first since 2015, to fund major infrastructure projects including roads, port and airport upgrades, and the expansion of energy networks.
President William Ruto’s government sees asset sales as a vital tool to meet growing infrastructure demands driven by population growth and regional trade.
Kinyanjui said the IPO could provide a meaningful boost to funding and efficiency, noting that previous partial privatisations, such as Safaricom, had delivered strong returns while improving governance.
“From a budgeting perspective, we have long underinvested in infrastructure, even as demand and capacity requirements increase rapidly,” she added. Public-private partnerships, she said, have already proven successful in driving large-scale projects forward.
She also highlighted the importance of transparency and accountability to guard against mismanagement or corruption, a persistent concern in major government transactions.
On fuel prices and supply stability, Kinyanjui said the sale is unlikely to have a direct impact due to Kenya’s regulatory framework. She also expects strong investor appetite for KPC shares given the company’s track record of profitability.
The government has indicated that Kenyan citizens will be given priority in the share offering, aiming to broaden local ownership while unlocking capital for long-term development.
–ChannelAfrica–
