Ruto: KPC set for September listing at bourse in State firms sale plan

Business
By Macharia Kamau | Jul 24, 2025

President William Ruto during the bell ringing ceremony to mark the listing of Linzi Finco’s Infrastructure Asset-Backed Security (IABS) on NSE, on July 23, 2025. [PCS]

State-owned entities will now be required to adopt a new disclosure framework as the government begins to lay groundwork to offload its shareholding in some of them.

President William Ruto, in pushing for the privatisation of some of public enterprises, said on Wednesday the National Treasury is developing a disclosure and listing framework for State-run companies modelled along capital market rules. They will then be required to list at least 20 per cent of their stake at the Nairobi Securities Exchange (NSE).

This is even as the President said he expects the Cabinet to approve the planned listing of Kenya Pipeline Company (KPC) by the end of July and the Initial Public Offering (IPO) to open in September. 

“We are implementing a structured, time-bound divestiture programme, starting with the listing of KPC. I expect the Cabinet to grant approval for this IPO before the end of the month, after which it will be submitted to the National Assembly for consideration,” he said. 

“The Privatisation Commission is working on the final approval and by September, we will have that listing here (at NSE).”

President Ruto spoke during the bell ringing ceremony to mark the listing of Linzi Finco’s Infrastructure Asset-Backed Security (IABS) on NSE.

KPC is among the State-owned entities that have for years been earmarked for privatisation, but the government has faced legal hurdles in the sale of the entities, with critics noting that it is of strategic importance and should not be left to the private sector. 

Dr Ruto further said the National Treasury is working on a framework that would compel State-owned entities to become more transparent through more disclosures.

The President said this would be in preparation for the listing of at least 20 per cent stake across different state enterprises at NSE.

“To further strengthen our capital markets, the National Treasury is developing a minimum disclosure and listing framework for all Public Interest Entities operating in Kenya. We are raising the bar to require public entities to begin disclosing standardised financial and operational data in line with capital markets standards. Within one year of initial disclosure, they will be required to list at least 20 per cent of their equity on the NSE,” he said. “This reform will promote transparency, improve governance, expand local ownership and give Kenyans the opportunity to directly participate in our country’s economic success. The Cabinet Secretary for the National Treasury will immediately establish an industry council to guide this process and advise the Attorney-General on the appropriate legal instruments for adoption.”

Linzi Finco Trusts, an affiliate of Liaison Group, raised Sh44.7 billion through the issuance of the asset-backed infrastructure bond. 

The funds will be used in the ongoing construction of the Talanta Sports Stadium, which is among the stadiums that will be used for the 2027 Africa Cup of Nations (Afcon).

The Talanta project, located on Jamhuri Grounds along Ngong Road, is being delivered through a Public-Private Partnership (PPP) model, with private sector players designing and building the stadium on government land.

It is the first major sports stadium that Kenya has built in nearly four decades. The government has been pushing the PPP model of financing mega infrastructure due to limited borrowing room.

While it has in the past failed to convince investors to pump money in public projects, the Nairobi-Expressway is seen as a model PPP project and now expects more firms to warm up to the idea. Ruto said privatisation is necessary to eliminate inefficiencies and raise the standards of governance in public enterprises. He also noted that by the government holding on to what observers say are critical assets such as KPC, Kenya risked lagging in development as other countries race ahead. 

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