Parastatal privatisation fears dismissed

Kenya’s Treasury Cabinet Secretary John Mbadi has dismissed fears that the Energy and Petroleum Regulatory Authority (EPRA) would raise fuel prices following the privatisation of the Kenya Pipeline Company (KPC), assuring that costs for key petroleum products, including petrol, diesel and kerosene, will remain stable. Mbadi told NTV that despite the sale, the government still holds a 35% stake in KPC, making it the largest shareholder and retaining significant decision-making power, according to the Kenyans. ‘We still have EPRA determining pricing, and there are other frameworks in the market to ensure compliance,’ he said. Mbadi highlighted that Kenya’s regulatory institutions, including EPRA, the Competition Authority, the Nairobi Securities Exchange, and the Capital Markets Authority, among others, work together to ensure that pricing regulations are strictly adhered to, and as such, there would be no room for such a surge. Meanwhile, Mbadi said funds raised from the privatisation of Kenya Pipeline Company and other strategic parastatal share sales will not go toward salaries or debt repayment, explaining that 90% of the proceeds will instead be channelled to the National Infrastructure Fund. Nonetheless, the government has formally unveiled the Kenya Pipeline Company Initial Public Offering at the Nairobi Securities Exchange, a landmark listing billed as the largest IPO ever undertaken in Kenya and the country’s first fully electronic public offer.