Kenyans have until Friday, August 22, 2025, to submit their views on the proposed Privatization Bill, 2025 (National Assembly Bill No. 36 of 2025), a draft law that seeks to overhaul how the government sells or restructures its stake in state-owned enterprises.
- •The Bill, sponsored by the Leader of the Majority Party, proposes to repeal and re-enact the legal framework that has guided privatization for nearly two decades.
- •It is expected to introduce stricter oversight measures and more transparent procedures in an area that has often generated heated public debate.
- •In early August, the Cabinet gave formal approval for the partial privatization of Kenya Pipeline Company (KPC), marking a major step towards the long-awaited initial public offering (IPO) of the state-owned energy utility.
Privatization has long been a politically sensitive issue in Kenya. Proponents argue that divesting from inefficient state corporations will cut public debt, attract new investment, and boost service delivery. Critics, however, warn that rushed or poorly structured privatizations could hand over public assets to private interests at throwaway prices, weaken regulatory safeguards, and risk job losses.
The new bill comes at a time when Kenya’s public debt has surpassed Kshs. 11 trillion as of May this year, fuelling pressure on the government to restructure its balance sheet and reduce reliance on borrowing. Parliament’s move to seek clause-by-clause submissions from the public reflects a growing recognition that privatization decisions must be anchored in transparency and broad-based consensus.
Stakeholders are expected to focus on provisions that touch on oversight and accountability – such as how Parliament and the Auditor-General will be involved in approving and reviewing privatizations. Other significant issues include the valuation of assets – ensuring that state corporations are not undervalued during sale, the of proceeds – whether funds from privatization should strictly go to debt reduction or be channeled into development projects, and the safeguarding jobs – protections for workers in entities slated for divestiture.
Big names in the government’s privatisation plan include Kenya Pipeline Company, New Kenya Cooperative Creameries (NKCC), Kenyatta International Convention Center (KICC), National Oil Corporation, Kenya Seed Company, The Kenya Literature Bureau (KLB), Mwea Rice Mills (MRM), Western Kenya Rice Mills, Numerical Machining Complex, Vehicle Manufacturers Limited (KVM), and Rivatex East Africa (REAL).
The KPC decision, made during a Cabinet meeting on July 29, 2025, reinstates KPC into the government’s privatization programme and clears the path for a landmark listing on the Nairobi Securities Exchange (NSE) targeted for September.
The move was just a week after President William Ruto, speaking at the NSE, confirmed plans to list KPC by September 2025. However, High Court has issued conservatory orders restraining the government from proceeding with the sale of Kenya Pipeline Company (KPC) shares under the current privatisation plan.
Justice Bahati Mwamuye issued the conservatory order on August 15 halting any sale, transfer or disposal of KPC shares until a petition challenging the move is fully heard.