Win for Ruto as High Court okays privatisation of Kenya Pipeline Company
Business
By
Nancy Gitonga
| Feb 19, 2026
The High Court has cleared the way for the government to proceed with the privatisation of Kenya Pipeline Company Limited (KPC), dismissing petitions that sought to block the sale of the state corporation.
Justice Bahati Mwamuye, in a judgment rendered on Thursday, allowed the state to proceed with the process of the proposed sale of the KPC after ruling that the petitions challenging the same lacked merit and were premature.
"The proposed privatisation of Kenya Pipeline Company Ltd as set out in Sessional Paper No. 2 of 2025 is not unconstitutional and may proceed in accordance with the Privatisation Act 2025, subject to the observations and recommendations contained in the report of the Joint Committee on Energy and the Select Committee on Public Debt and Privatisation dated August 14 2025," Justice Mwamuye ordered.
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The judge noted that any concerns raised by the petitioners over the valuation of KPC’s land and potential alienation of public assets would be addressed at the implementation stage.
“Should any actual disposition or alienation of land occur, the National Land Commission will have a role in accordance with Article 67, Clause 2 of the Constitution. At this juncture, no such disposition has taken place and the petitioners’ concerns are therefore premature. Accordingly, this ground rule challenge fails,” the judge said.
The petitions, filed by the Consumers Federation of Kenya (COFEK) and the Kenya Petroleum and Oil Workers Union (KPOWU), sought to halt the privatisation process, arguing that it threatened public interest, could compromise national security, undermine consumer protection, and violate employees’ rights.
READ: KPC stake sale: Kenya's strategic play in East Africa's oil and gas rush
The petitioners also alleged that the process lacked meaningful public participation and raised concerns over the handling of KPC’s land assets.
Justice Mwamuye dismissed these claims, noting that the government had undertaken extensive consultations.
“The joint committee received 40 memoranda from stakeholders, including the second petitioner, and produced a comprehensive report addressing the issues raised. The second petitioner was given and took the opportunity to present its views, which were considered by the committee,” he said.
On matters of public finance and transparency, the court affirmed that the government had complied with constitutional requirements.
“The respondents have taken reasonable steps to comply with the principles of public finance under Articles 201 and 227. The process has been informed by comprehensive due diligence, including financial analysis. The valuation will be undertaken by qualified persons at the implementation stage. The proceeds will be subject to parliamentary appropriation, oversight by the controller, and audit by the Auditor General,” Justice Mwamuye noted.
The court also dismissed concerns related to national security and consumer protection, ruling that the regulatory framework governing the petroleum sector remains intact and will continue to safeguard interests regardless of corporate ownership changes.
ALSO READ: Privatisation Act 2025 is constitutional, High Court rules
Further, employment-related grievances raised by KPOWU were deemed outside the High Court’s jurisdiction and the judge ordered the petitioners to pursue the same before the Employment and Labour Relations Court.
Clarifying the issue of public land, Justice Mwamuye stated: “The transfer of shares in a state corporation is not the alienation of public land. The valuation of a company’s land assets will be undertaken at the implementation stage and will be subject to the oversight mechanisms provided in the Privatisation Act.”
The Court concluded that the privatisation process had been transparent, involved meaningful public participation, and substantially complied with the Constitution.
The court dismissed the consolidated petitions dated August 14 2025, August 25 2025, and the amended petition of September 4, 2025, with each party bearing its own costs.