The High Court has halted the government's plan to privatise Kenya Pipeline Company pending determination of an application filed by the Consumer Federation of Kenya (Cofek).
Justice Bahati Mwamuye issued the conservatory order following transparency queries raised by Cofek and allegations of statutory breach.
In the application, Cofek argues that the transaction threatens national security and consumer welfare as "KPC is designated critical infrastructure under the Energy Act, 2019, and its privatisation without safeguards may expose the petroleum supply chain to risks of manipulation, sabotage, or monopolistic exploitation".
"The process violates express provisions of the Privatisation Act, 2023, which require transparency, public participation and parliamentary oversight before any disposal of public assets. Failure to involve the public in the privatisation process undermines the sovereignty of the people as enshrined in Article 1 of the Constitution," claimed the lobby's lawyer Tali Israel Tali.
It was also argued that the transaction threatens national security and consumer welfare, "as KPC is designated critical infrastructure under the Energy Act, 2019".
"Its privatisation without safeguards may expose the petroleum supply chain to risks of manipulation, sabotage, or monopolistic exploitation," Cofek claimed.
The lobby group's Secretary-General, Stephen Mutoro, said that the government breached Section 5 of the Privatisation Act, which provides for the guiding principle in the privatisation of national assets.
The principles include the promotion of participation by Kenyans in the sustainable development and protection of the economy, transparency and accountability, efficiency and sustainability, cost-effectiveness and value for public resources.
The High Court order blocks the government from offering for sale, allocating, disposing of, transferring, or otherwise dealing with any shares of Kenya Pipeline.
Effectively, the order has delayed plans by the National Treasury to address budget shortfalls in the 2025/26 fiscal year. The National Treasury previously argued that it intended to raise approximately Sh100 billion from the sale of 65 percent of Kenya Pipeline shares through an initial public offering at the Nairobi Securities Exchange.
The court order is directed to the Cabinet Secretary for National Treasury and Planning, the Privatisation Authority, Attorney-General and the National Assembly, who are named as respondents in the suit. It is also directed to Kenya Pipeline, the Capital Markets Authority and Nairobi Securities Exchange (NSE), who are named as the interested parties.
The case is fixed for hearing on September 5, 2025.
