The High Court in Nairobi has temporarily halted the government’s plan to  sell a controlling stake in Kenya Pipeline Company (KPC) through an initial public offering this September, The Standard reported.

Justice Bahati Mwamuye issued a conservatory order on August 15 in response to a petition filed by the Consumers Federation of Kenya (Cofek), which challenged the government’s plan to privatise the company.

As outlined in Sessional Paper No. 2 of 2025, the government aims to raise crucial funds through the KPC privatisation to support Kenya's 2025/2026 budget with the government retaining a shareholding to maintain influence in the energy sector.

Cofek argued that KPC’s strategic role in Kenya’s energy supply means that selling a stake of up to 65% in the company, as proposed, without proper public participation, could threaten government revenue and destabilise petroleum distribution.

KPC, founded in 1977 and operating under the Ministry of Energy, manages a 1,700-kilometre network transporting refined petroleum products from the port of Mombasa to regional distribution points. ts assets make it one of East Africa’s most significant energy infrastructure companies, underpinning the region’s petroleum supply and pricing.

Justice Mwamuye ruled that pending a hearing and ruling on the motion application dated August 14, a conservatory order be issued "restraining the respondents and the interested parties… from offering for sale, allocating, disposing, transferring or otherwise dealing with any shares" of KPC.

The court directed respondents and interested parties to file their responses by August 22, ahead of a hearing, according to The Standard. 

As bne IntelliNews reported, KPC reported a pre-tax profit of KES 10bn ($77.13mn) for the 2023-24 financial year, a 32% year-on-year increase, while revenue rose 15% to KES 35.4bn ($273.04mn), driven by higher petroleum throughput and favourable forex rates.

The IPO is a key component of a broader plan to generate approximately KES149bn ($1.15bn) from asset sales. The government aims to attract private investment through privatisation while enhancing oversight and governance, with the Capital Markets Authority, World Bank, and IMF noting that such listings can strengthen capital markets in the energy and transport sectors, The Kenya Times reported.

KPC’s proposed privatisation has previously faced legal challenges. In 2023, Raila Odinga, leader of the opposition Orange Democratic Movement, filed a case to halt its sale, accusing the Kenya Kwanza administration of selling off Kenya’s sovereignty without public participation.

As bne IntelliNews reported, President William Ruto had earlier said that Kenya planned to list KPC on the Nairobi Securities Exchange (NSE) by September. In July, the Cabinet — during a meeting chaired by President Ruto at State House, Nairobi — approved the reinstatement of KPC into the privatisation programme