Parliament Sets Conditions for Privatisation

Christopher Ajwang
2 Min Read

Members of Parliament (MPs) have cautioned that the Kenya Pipeline Company (KPC) will not be permitted to import or sell petroleum products once privatised unless certain government conditions are fully adhered to.

The decision comes amid ongoing discussions on privatising state-owned enterprises to improve efficiency and reduce public debt. Parliamentarians emphasised that privatisation should protect public interest, energy security, and ensure accountability.


MPs Stress Regulatory Compliance

Lawmakers noted that the Energy and Petroleum Regulatory Authority (EPRA) must maintain strict oversight over any future operations of the pipeline.

“Privatisation cannot mean a free-for-all. KPC must follow the law, protect consumers, and ensure uninterrupted supply,”
an MP overseeing the energy sector said.

They stressed that any privatised entity would remain subject to regulatory approvals and government supervision to prevent monopolistic practices or disruption of the fuel supply chain.


Government Perspective

The government has indicated that privatisation is intended to enhance efficiency, reduce operational costs, and attract private investment. However, MPs argue that the public good must remain paramount, and no commercial interests should compromise national energy security.

Key issues highlighted by MPs include:

  • Ensuring continuous fuel supply to counties and major cities.

  • Maintaining affordable prices for consumers.

  • Safeguarding strategic petroleum reserves.

  • Guaranteeing employee welfare during the transition.


Next Steps

The parliament committee will meet with Energy Cabinet Secretary and KPC management to outline legal, operational, and commercial conditions before any privatisation deal is finalised.

MPs have vowed that any privatisation agreement ignoring these safeguards will not be approved, effectively giving lawmakers the final say in how Kenya’s petroleum sector is handled.

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