Kenya is preparing to open up select state-owned enterprises to private investors through initial public offerings (IPOs), in a move aimed at boosting private sector involvement and reducing reliance on public funding. President William Ruto made this announcement during a speech at the London Stock Exchange on Wednesday.
The first to be listed will be the Kenya Pipeline Company, which the government plans to float on the Nairobi Securities Exchange later this year, Ruto confirmed.
“We are committed to a structured, time-sensitive programme that identifies and prepares a robust pipeline of key government assets to be privatised through the stock exchange or improved through private sector participation,” he said.
President Ruto also emphasized that strengthening domestic capital markets could play a vital role in minimizing dependence on foreign borrowing.
The East African nation has been exploring alternative funding options since widespread protests last year led to the cancellation of planned tax increases totaling more than 346 billion Kenyan shillings ($2.68 billion) and a shift towards austerity measures.
Speaking later at the Africa Debate event on Wednesday, Ruto addressed recent global funding uncertainties, referencing U.S. President Donald Trump’s decision to eliminate USAID this year.
“Kenya is working to rely on its own resources, and private investments, rather than ‘resources that we do not have any control over.’”
He also revealed the government’s strategy to engage the private sector in healthcare delivery, including plans to provide medical equipment through a fee-per-use model. Additionally, Ruto noted that Kenya had raised $1.3 billion by securitising infrastructure assets like roads.
“We are now going to be listing some of those bonds in the securities exchange so other investors can have a bite of the cherry,” he said.
($1 = 128.9500 Kenyan shillings)
