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The High Court of Kenya on Friday issued a temporary order halting the government's highly anticipated plan to sell a majority stake (65%) in the Kenya Pipeline Company (KPC).
The conservatory order puts an immediate freeze on any sale, transfer, or allotment of shares in the state-owned enterprise pending a court hearing.
The ruling was delivered by Justice Bahati Mwamuye of the Milimani High Court's Constitutional and Human Rights Division, following a petition filed by the Consumers Federation of Kenya (COFEK).
Kenya Pipeline infrastructure
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The consumer watchdog is challenging the legality of the proposed privatisation plan.
According to the court order, the respondents, which include the Cabinet Secretary for the National Treasury, John Mabdi and the Privatisation Authority, are "hereby issued restraining the Respondents and the Interested Parties... from offering for sale, allocating, disposing, transferring, or otherwise dealing with the shares of Kenya Pipeline Company Limited."
This decision deals a significant blow to the government's plans to raise an estimated Sh100 billion through an Initial Public Offering (IPO) on the Nairobi Securities Exchange, which was slated for as early as next month.
The funds were intended to finance the 2025/26 national budget and reduce the country's reliance on borrowing.
The court has laid out a strict timeline for the case to proceed. The respondents and other interested parties have until August 22, 2025, to file their responses to the petition.
A formal hearing of the application is scheduled for September 5, 2025, at 10:00 AM, where the court will listen to arguments from all sides to determine whether the freeze on the sale should be extended.
The legal challenge by COFEK introduces a major hurdle to one of the administration's flagship economic policies.
The outcome of the upcoming hearing will be closely watched, as it will determine the immediate future of the KPC privatisation and could set a precedent for other planned state-owned enterprise sales.
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Jitters Caused by Planned KPC Privatisation
Beyond the boardroom and parliamentary chambers, the move to privatise the state-owned energy giant is more than just a line item in the national budget; it's a landmark decision with the potential to directly impact millions of Kenyans, the nation's economic stability, and its very security.
For most Kenyans, the complex debate boils down to one critical question: What will this mean for the price of petrol?
KPC operates as the country's energy artery, holding a near-monopoly on the transport of fuel from the coast to the inland.
The fees it charges for this service are a key component in the final price set by the Energy and Petroleum Regulatory Authority (EPRA).
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Energy Cabinet Secretary Opiyo Wandayi
However, Energy Cabinet Secretary Opiyo Wandayi has moved to allay fears that the privatisation will lead to an increase in fuel prices.
Critics, including the Consumers Federation of Kenya (COFEK), which successfully petitioned the court for the temporary injunction, argue that a private owner's primary mandate will be maximising shareholder profit.
This, they fear, will inevitably lead to higher pipeline tariffs, a cost that oil marketers will pass directly to consumers at the pump. The ripple effect could drive up the cost of everything from matatu fares to food prices.