The government has received another legal victory after the High Court refused to issue an injunction to stop the planned privatisation of the Kenya Pipeline Company (KPC).
In a ruling on Monday, February 23, Justice Lawrence Mugambi stated he could not grant substantive orders as the privatisation process had already been scheduled for mention.
Mugambi, however, raised jurisdictional concerns and the need to hear all parties involved before making a decision, with the petition set to be heard on March 18.
The case was initiated by Busia Senator Okiya Omtatah and two other individuals on January 2. They contested the privatisation of KPC, along with other state-owned entities scheduled for privatisation in recent months.
In their petition, the claimants contended that the decision to privatise the entity resulted from International Monetary Fund (IMF) pressure rather than public consensus.
“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 concerns included insufficient public participation and parliamentary approval through a Sessional Paper instead of proper legislation.
They requested the court to declare the entire process unconstitutional, cancel all decisions and notices, and permanently prevent any further steps towards privatising the entity.
The court’s decision follows recent dismissals of petitions challenging the Privatisation Act, 2025, which cleared the way for selling stakes in state-owned enterprises, including KPC.
In a separate development, Uganda announced on Sunday, February 22, that it had acquired a stake in the Kenya Pipeline Company IPO after formally signing an agreement with Kenyan authorities.
According to Uganda’s Minister of Energy and Mineral Development, Ruth Ssentamu, Uganda will obtain a strategic position in what she described as a vital 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 strengthen its strategic position in East Africa’s evolving energy landscape. This move will bolster regional energy cooperation and protect Uganda’s long-term fuel security,” Ssentamu stated after signing the agreement.
The government is inviting both Kenyan and international investors to purchase shares in one of the country’s most critical energy infrastructure firms. The sale is projected to raise Ksh106 billion.