Kenyans to Dig Deeper Into Their Pockets in January as Government Raises Fuel Prices After Kenya Pipeline

Treasury Cabinet Secretary John Mbadi moved to quell public concerns regarding potential fuel price hikes following the government’s sale of a majority stake in the Kenya Pipeline Company (KPC).

The landmark Initial Public Offering, which opened on January 19, is offering 65 per cent of KPC’s shares to the public at Ksh9 per share. The offer is scheduled to run until February 19 and is projected to raise approximately Ksh106 billion for the state.

Speaking on NTV, CS Mbadi firmly dismissed suggestions that the privatisation would lead to increased costs for petrol, diesel, or kerosene. He attributed this assurance to Kenya’s existing regulatory framework and the government’s retained 35 per cent shareholding, which ensures it remains the single largest shareholder.

“The notion that privatising KPC will automatically raise pump prices is unfounded,” stated Mbadi. “Price control remains the mandate of the Energy and Petroleum Regulatory Authority (EPRA), not the pipeline operator. Our regulatory bodies are structured to prevent such outcomes.”