May 1, 2026
Relief For Ruto As High Court Upholds The Privatisation Act 2025

Relief For Ruto As High Court Upholds The Privatisation Act 2025

The High Court of Kenya has dismissed petitions contesting the Privatisation Act of 2025, paving the way for the sale of interests in state-owned firms such as Kenya Pipeline Company Limited (KPC).

In a ruling issued at the Milimani Law Courts, Justice Bahati Mwamuye dismissed a plea by civil society organisations seeking to annul the statute on the grounds that it undercut parliamentary power.

The petitioners claimed that the transaction was unconstitutional and motivated by foreign pressure from the International Monetary Fund (IMF).

In their filing, the group defined KPC as a lucrative, publicly held strategic asset.

They quoted 2024 data showing KPC making Ksh6.87 billion in profit and paying Ksh7 billion in dividends to the national treasury.

According to the petitioners, selling the corporation to pay off public debt would contravene public finance regulations and jeopardize national sovereignty and energy security.

Justice Mwamuye ruled that Parliament had appropriate oversight over the process and that the law did not give the Executive unlimited power.

The High Court verdict allows the government to proceed with its plans to sell shares in KPC and other critical state-owned companies.

Nonetheless, in its efforts to privatize the corporation, the government has previously stated that it seeks to increase operational efficiency, strengthen corporate governance, and promote transparency through public listing.

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At the same time, the government aims to channel proceeds from the sale towards critical development projects, reduce government borrowing, and strengthen Kenya’s capital markets.

The Kenya Pipeline Company, incorporated in 1973 and operational since 1978, is responsible for transporting petroleum products, including petrol, diesel, jet fuel, and kerosene across Kenya and to regional neighbouring markets.

Through the transaction, the government aims to offer 65 per cent of KPC’s ordinary shares to the public at Ksh9 per share.

They invited both Kenyan and international investors to buy into one of the nation’s most strategic energy infrastructure firms. The sale is expected to raise Ksh106 billion.

Relief For Ruto As High Court Upholds The Privatisation Act 2025

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