High Court clears way for Kenya Pipeline Company privatisation

The High Court has dismissed consolidated petitions challenging the proposed privatisation of Kenya Pipeline Company Limited (KPC).

The orders pave the way for the government to proceed with the transaction as set out in Sessional Paper Number 2 of 2025.

In a judgment on Thursday, the court found that the privatisation process had been conducted in substantial compliance with the Constitution and the law.

It rejected claims that the move was opaque, unconstitutional, or a threat to public assets and national interests.

The judge held that Parliament lawfully approved the privatisation framework and that sufficient safeguards exist to protect public finance, land, workers’ rights and consumers.

In his judgment, the judge highlighted that the privatisation process had complied with constitutional requirements for public participation, parliamentary scrutiny, and transparency.

He pointed out that the valuation of KPC’s assets, including land holdings, will be undertaken at the implementation stage under the oversight mechanisms of the Privatisation Act.

“At this juncture, no such disposition has taken place, and the petitioner’s concerns are therefore premature,” the court noted, rejecting arguments that the National Land Commission should have been involved at the parliamentary approval stage.

"The proposed privatisation of Kenya Pipeline Company Limited, as set out in Sessional Paper Number 2 of 2025, is not unconstitutional and will proceed in accordance with the Privatisation Act," Justice Mwamuye ruled.

The judge also noted that the process will be implemented in line with parliamentary oversight.

“The implementation shall be subject to the observations and recommendations contained in the report of the Joint Committee on Energy and the Select Committee on Public Debt and Privatisation dated 14th August, 2025,” the court said.

He underscored that lawmakers had carefully considered stakeholder input before approving the framework.

Addressing the concerns of workers, the court clarified that employment-related grievances raised by the Kenya Petroleum and Oil Workers Union fall outside its jurisdiction.

“The second petition of the Kenya Petroleum and Oil Workers Union is at liberty to pursue any employment-related grievances arising from the implementation of the privatisation before the Employment and Labour Relations Court,” the judge said, reaffirming that labour matters must be handled by specialised courts.

On the jurisdiction challenge, the court was categorical that it had the mandate to hear the matter, stating that “this court has full and undoubted jurisdiction to determine the consolidated petitions.”

It noted that the dispute raised “pure constitutional questions regarding the validity of the proposed privatisation of the Kenya Pipeline Company Limited.