Court Refuses to Block Kenya Pipeline Company Privatisation as Uganda Secures Stake

High Court declines conservatory order, dealing another setback to opponents of the government’s privatisation agenda

The government has been handed another boost in a matter of days after the High Court declined to issue a conservatory order to block the planned privatisation of the Kenya Pipeline Company (KPC).

While issuing the orders on Monday, February 23, Justice Lawrence Mugambi noted that he would not be able to grant substantive orders since the privatisation process had already been listed for mention. 

Mugambi, however, cited jurisdiction concerns and the need to hear all parties mentioned in the case as the petition is scheduled to be heard on March 18.

The case was filed by Busia Senator Okiya Omtatah together with two others on January 2.  They challenged the privatisation of KPC, as well as other state-owned agencies that have been scheduled for privatisation in recent months. 

Busia Senator Okiya Okoiti Omtatah

Photo

Okiya Omtatah

In their petition, the petitioners argued that the decision to privatise the entity stemmed from International Monetary Fund (IMF) pressure rather than public will.

“This plan is unconstitutional, unlawful, and anti-sovereign. It is not a decision of the people of Kenya, but one driven by external pressure from the International Monetary Fund,” Omtatah claimed in their petition.

Other issues included the lack of public participation, irregular appointments at the Privatisation Commission, and parliamentary approval via a Sessional Paper rather than proper legislation.

They therefore asked the court to declare the entire process unconstitutional, quash all decisions and notices, and permanently bar any further steps towards the privatisation of the entity.

The court ruling comes days after it dismissed petitions challenging the Privatisation Act, 2025, paving the way for the sale of stakes in state-owned enterprises, including KPC.

In his judgment, Justice Bahati Mwamuye, in a ruling delivered at the Milimani Law Courts, dismissed a petition by civil society organisations that had sought to invalidate the law because it undermined parliamentary authority.

Following the latest ruling, the Ugandan government announced on Sunday, February 22, that it had secured a stake in the Kenya Pipeline Company IPO after formally signing the agreement to acquire the stake with the Kenyan authorities.

According to Uganda’s Minister of Energy and Mineral Development, Ruth Ssentamu, Uganda will secure a strategic stake in what she termed a critical regional energy asset.

“By investing in KPC, a key player in regional petroleum transport and storage, Uganda aims to enhance supply chain stability, ensure reliable and affordable fuel imports and reinforce its strategic position in East Africa’s evolving energy landscape. This move will strengthen regional energy cooperation and will safeguard Uganda’s long-term fuel security,”  Ssentamu stated after signing the agreement.

The government aims to offer 65 per cent of KPC’s ordinary shares to the public at Ksh 9 per share, inviting both Kenyan and international investors to buy into one of the nation’s most strategic energy infrastructure firms. The sale is expected to raise Ksh106 billion.