By Kennedy Nalyanya
In a significant move signalling a potential shake-up in Kenya's parastatal landscape, President William Ruto has announced plans to list the Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange (NSE). This strategic decision, subject to Cabinet and parliamentary approval, aims to inject new levels of efficiency and elevate governance standards within the vital state corporation.
To list a company on the Nairobi Securities Exchange (NSE) means that the company's shares are formally admitted for trading on the exchange. Essentially, it's the process by which a privately held company "goes public," allowing its shares to be bought and sold by investors on the open market.
resident Ruto emphasized that the listing of KPC is a crucial step towards addressing long-standing inefficiencies and fostering greater transparency. If approved, KPC would join a distinguished list of successful state-owned enterprises already trading on the NSE, including Safaricom, Kenya Electricity Generating Company (KenGen), and Kenya Commercial Bank (KCB).
"While other nations in the region have moved boldly and strategically to divest and reinvigorate their economies, Kenya has not undertaken a single privatisation in over a decade," President Ruto stated, highlighting the government's renewed commitment to economic reforms and private sector participation.
The announcement came during the bell-ringing ceremony for the listing of the Linzi 003 Infrastructure Asset-Backed Security at the NSE, a landmark transaction that successfully raised over KSh44 billion. This achievement, the first of its kind in Kenya, underscores the growing sophistication and depth of the nation's financial markets.
President Ruto also took the opportunity to reaffirm Kenya's positive economic trajectory, citing low inflation, a stable shilling, and increasing foreign exchange reserves as key indicators. He proudly noted that Kenya has advanced to become the sixth largest economy in Africa, climbing from eighth place just two years ago.
Addressing critics, President Ruto articulated a clear vision of intentional leadership aimed at matching national ambition. "The critics may say I am wrong. The cynics may say I am lying. And the naysayers may even say I am mad. But what if they are all wrong - and they are," he challenged, underscoring his unwavering resolve to drive transformative change.
This proposed listing of KPC represents a bold step in the government's economic agenda, potentially unlocking new capital, improving operational performance, and enhancing corporate governance within a critical national asset. Investors and market watchers will undoubtedly be keen to follow the progress of this significant development.
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