“Ruto Defends Kenya Pipeline Sale as Critics Question KSh106 Billion Privatization Deal”
By News Desk
Ruto Says Privatization Will Unlock Value as Kenya Pipeline IPO Raises KSh106 Billion
President William Ruto has defended the government’s decision to privatize key state assets, saying the move will unlock massive value and accelerate infrastructure development across the country.
Speaking during the bell-ringing ceremony to mark the start of share trading for the Kenya Pipeline Company Initial Public Offering (IPO) at the Nairobi Securities Exchange, the President said the transaction has already raised KSh106 billion, far exceeding the KSh5 billion in annual dividends the government had been receiving from the company.
According to the President, the funds will be channeled through the newly established National Infrastructure Fund, whose enabling law he signed earlier this week. The government plans to leverage the KSh106 billion to attract private investment and raise up to KSh1.2 trillion for major infrastructure projects.
Ruto described the model as an innovative financing approach that will reduce reliance on borrowing while enabling the country to build transformative infrastructure.
“Privatisation is helping us unlock immense value from our mature public assets. Through the National Infrastructure Fund, we will leverage the KSh106 billion to crowd in private capital and raise KSh1.2 trillion to finance mega transformative infrastructure projects,” the President said.
He emphasized that the strategy would help ease pressure on the national budget, reduce taxes, and cut sovereign debt, positioning Kenya for long-term economic growth.
The President noted that the move signals a shift toward public-private partnerships and capital market financing as the government seeks sustainable ways to fund development.
The bell-ringing ceremony officially marked the start of share trading for the Kenya Pipeline Company IPO, a move the government believes will broaden investment opportunities for Kenyans while injecting fresh capital into national development.
However, the privatization plan has sparked debate among economists, lawmakers, and the public, with critics questioning whether selling stakes in profitable state corporations could weaken government control over strategic national assets.
Despite the concerns, the President maintained that the model represents a bold step toward transforming Kenya’s economy within a generation.
