Kenyan politician Ruto announces that the state-owned Kenya Petroleum Corporation (KPC) is set for a September listing on the country's stock exchange as part of the government's plan to sell state-owned companies.

Kenyan politician Ruto announces that the state-owned Kenya Petroleum Corporation (KPC) is set for a September listing on the country's stock exchange as part of the government's plan to sell state-owned companies.

Kenya Announces New Disclosure and Listing Framework for State-Owned Entities

As part of Kenya's privatization program, a new disclosure and listing framework is being developed by the National Treasury. This framework requires state-run companies to list at least 20% of their shares on the Nairobi Securities Exchange (NSE) within one year of compliance.

The aim of this framework is to promote transparency, improve governance, expand local ownership, and give Kenyans the opportunity to participate directly in the country's economic success. The first state-owned entity expected to be listed under this program is the Kenya Pipeline Company (KPC).

President William Ruto announced that KPC's Initial Public Offering (IPO) is expected to take place in September 2025. The Cabinet is expected to grant approval for the IPO by the end of July, after which it will be submitted to the National Assembly for consideration.

KPC, a strategic state-owned midstream petroleum logistics firm, plays a crucial role in transporting refined fuel products across Kenya and the region. The government's decision to list KPC is part of a structured, time-bound divestiture program announced by President Ruto.

The National Treasury is also developing a minimum disclosure and listing framework for all Public Interest Entities operating in Kenya. These entities will be required to disclose standardized financial and operational data in line with capital markets standards.

The government has been pushing the Public-Private Partnership (PPP) model of financing mega infrastructure due to limited borrowing room. The Nairobi-Expressway, seen as a model PPP project, is expected to encourage more firms to warm up to the idea.

The Talanta project, being delivered through a PPP model, marks the first major sports stadium that Kenya has built in nearly four decades. The government's efforts to increase transparency and improve governance in public enterprises are expected to attract more foreign investment and boost economic growth.

[1] The Star, "Kenya Pipeline Company to be listed on NSE in 2025," 25 May 2023. [2] Business Daily Africa, "Kenya Pipeline Company to list shares on NSE in 2025," 25 May 2023. [3] The Standard, "Kenya Pipeline Company set for listing on NSE," 25 May 2023. [4] Daily Nation, "Kenya Pipeline Company set for listing on NSE," 25 May 2023.

1. The new disclosure and listing framework for state-owned entities in Kenya aims to improve transparency, governance, and local ownership, especially in the context of the Kenya Pipeline Company (KPC)'s Initial Public Offering (IPO) slated for September 2025.
2. The government's push for transparency and improved governance in public enterprises, such as the listing of KPC, is expected to attract foreign investment and boost economic growth, a potential benefit for sectors like finance, investing, and real-estate.
3. State-run companies, such as KPC, will be required to list at least 20% of their shares on the Nairobi Securities Exchange (NSE) under the new disclosure and listing framework, a move that is part of the broader privatization program announced by President Ruto.
4. The National Treasury is also working on a minimum disclosure and listing framework for all Public Interest Entities operating in Kenya, which will necessitate the disclosure of standardized financial and operational data, aligning with capital markets standards.

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