Kenya will begin privatising several state-owned enterprises through initial public offerings (IPOs), with the Kenya Pipeline Company (KPC) leading the way, President William Ruto announced on Tuesday during a high-profile visit to the London Stock Exchange.

The announcement marks a significant step in the East African nation’s efforts to revitalise its economy, attract greater private sector investment, and reduce dependency on external debt. It is the first major privatisation initiative in nearly two decades and comes amid ongoing reforms aimed at strengthening domestic capital markets and enhancing fiscal sustainability.

President Ruto, addressing investors and financial leaders in London, said the move would “unlock the full potential of our strategic assets by making them more efficient, competitive, and responsive to market demands.” He noted that the privatisation of KPC would be the first in a series of listings, with other public enterprises expected to follow suit in the near future.

Later, speaking at The Africa Debate – a prominent forum for African economic dialogue – President Ruto outlined his administration’s broader strategy to fund national development through public-private partnerships and asset securitisation. He revealed that Kenya has successfully raised $1.3 billion through infrastructure-backed bonds, part of a broader plan to leverage government assets to access capital markets more effectively.

“These bonds will also be listed to ensure greater transparency and attract a wider pool of investors,” Ruto said, underscoring the role of local and international capital markets in supporting infrastructure development and economic transformation.

The privatisation drive comes on the heels of last year’s widespread protests and economic disruptions, which underscored the urgency of reforms to stimulate growth, improve service delivery, and generate employment. Ruto’s government has since rolled out a series of fiscal and structural reforms aimed at reducing the budget deficit and improving investor confidence.

Analysts say the IPO of the Kenya Pipeline Company – a key player in the country’s energy infrastructure – could set a precedent for how Kenya and other African nations manage state assets in an increasingly competitive global investment environment.

The government’s privatisation programme is being closely watched by both local and foreign investors, who view it as a litmus test for the country’s commitment to market-driven reforms. If successful, it could bolster Nairobi’s position as a regional financial hub and provide a model for other African countries seeking to revitalise their economies through strategic asset divestment.

The Kenya Pipeline Company IPO is expected to proceed later this year, pending regulatory approvals and market conditions. Further details regarding valuation, listing venue, and offer structure are expected to be announced in due course.