The Kenyan government has announced plans to raise funds for major development projects by selling part of its ownership in several state-linked companies, including Safaricom, Kenya Airways and Kenya Pipeline Company.
The move is aimed at financing infrastructure projects without increasing taxes or adding to the country’s debt burden. Officials say the strategy will support investments in roads, energy, water projects and airport upgrades across the country.
The plan is anchored under the Privatization Act, 2025, which allows the government to sell stakes in state-owned enterprises. In the first phase, 45 government-linked firms have been identified, with more expected to follow in later stages.
Proceeds from the share sales will be channelled into two new vehicles the National Infrastructure Fund and the Sovereign Wealth Fund.
These funds are expected to drive long-term development while attracting both local and foreign investors into Kenya’s capital markets.
Some of the changes are already underway. The government recently reduced its stake in Safaricom after selling 15 per cent to Vodacom Group, leaving the State with a 20 per cent shareholding.
Kenya Airways has also been earmarked for a partial sale as part of efforts to stabilise and restructure the airline.
Meanwhile, Kenya Pipeline Company is planning to sell up to 65 per cent of its shares through an initial public offering (IPO), with March 2026 set as the target timeline.
Other entities listed in the first phase include Kenyatta International Convention Centre (KICC), National Oil Corporation of Kenya (NOCK), Kenya Seed Company, New Kenya Co-operative Creameries (NKCC), Rivatex East Africa and East African Portland Cement.
While the government insists the programme will improve efficiency and accountability in state-owned firms, the plan has sparked debate.
Critics have raised concerns over transparency, possible undervaluation of public assets and reduced parliamentary oversight under the new law.
As of January 2026, the government says the privatisation process will be rolled out gradually, with the broader goal of funding development projects while easing pressure on Kenya’s growing public debt.
