Government Addresses Concerns Over Fuel Prices After Kenya Pipeline Sale
The government has moved to calm public fears over possible fuel price increases following the privatisation of the Kenya Pipeline Company (KPC), assuring Kenyans that the cost of petroleum products will remain stable.
Treasury Cabinet Secretary John Mbadi has firmly dismissed claims that fuel prices could rise after the sale of KPC. Speaking during an interview on NTV on Thursday, Mbadi said there is no basis for such fears, noting that Kenya has strong regulatory systems that protect consumers from unjustified price hikes.
According to the CS, fuel prices in Kenya are not determined by ownership of the pipeline company but by an independent pricing framework overseen by the Energy and Petroleum Regulatory Authority (EPRA).
He explained that EPRA will continue setting fuel prices as it has always done, regardless of changes in KPC’s ownership structure.
Mbadi further pointed out that even after privatisation, the government will still retain a 35 per cent stake in KPC, making it the single largest shareholder. This, he said, gives the State continued influence over key decisions affecting the company and the wider energy sector.
“Many Kenyans are asking whether petrol prices will go up after KPC is privatised. The answer is no,” Mbadi stated. “EPRA is still in charge of pricing, and there are clear frameworks in place to ensure all market players follow the rules.”
He added that several regulatory institutions work together to safeguard consumers. These include EPRA, the Competition Authority of Kenya, the Capital Markets Authority (CMA), and the Nairobi Securities Exchange (NSE).
Mbadi said the involvement of these bodies ensures transparency, competition, and strict adherence to pricing regulations, leaving no room for sudden or unjustified fuel price increases.
The Treasury CS also clarified that KPC does not set fuel prices in the country. Instead, its role is limited to transporting petroleum products from entry points to different parts of Kenya. As such, changes in KPC’s ownership will not directly affect the pump prices paid by motorists and households.
Mbadi went on to reassure the public that the cost of transporting fuel through the pipeline network will not rise after the sale. He said the same regulatory safeguards will continue to apply, ensuring transport charges remain fair and controlled.
He urged Kenyans to remain calm, stressing that the privatisation of KPC should not be viewed as a threat to fuel affordability. “There is no reason for panic. The systems we have in place are strong enough to protect consumers,” he said.
In its latest fuel price review, EPRA announced that consumers are currently paying Ksh182.52 per litre for Super Petrol, Ksh170.47 for Diesel, and Ksh153.78 for Kerosene. These prices, Mbadi said, reflect the existing regulatory framework, which will remain unchanged.
On the use of funds raised from the privatisation programme, Mbadi clarified that the money will not be used to pay salaries or service public debt.
Instead, he revealed that 90 per cent of the proceeds from the sale of KPC shares and other strategic parastatals will be directed to the National Infrastructure Fund to support long-term development projects.
Meanwhile, the government has officially launched the Kenya Pipeline Company Initial Public Offering (IPO) at the Nairobi Securities Exchange. The listing has been described as a historic milestone, as it is expected to be the largest IPO ever conducted in Kenya and the country’s first fully electronic public offer.
Under the IPO, the government is offering 65 per cent of KPC’s issued ordinary shares to the public at a price of Ksh9 per share. This move opens up ownership of one of Kenya’s most critical energy infrastructure companies to both local and international investors.
The offer period runs for one month, from January 19 to February 19, 2026. The IPO is projected to raise approximately Ksh106 billion and forms part of the government’s broader privatisation strategy aimed at boosting investment, improving efficiency, and supporting national development.
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