Kenya’s President Ruto advocates for privatization and highlights the pipeline IPO initiative during a public event.
Kenya has launched its most consequential privatization since Safaricom’s 2008 IPO, with the government offering 65% of the Kenya Pipeline Company to private investors in a deal worth $825 million. President William Ruto plans to ring-fence proceeds from the sale exclusively for a national infrastructure fund and sovereign wealth fund rather than debt repayment. The move comes as Kenya’s public debt reaches a staggering $86 billion, consuming 64% of government revenues through debt servicing alone. Simultaneously, Nairobi is selling a 15% stake in Safaricom to South Africa’s Vodacom in a $2.1 billion deal, potentially netting Kenya $2.72 billion combined. However, economists caution that while privatization offers welcome fiscal relief, sustainable recovery will ultimately require targeted investment in high-growth sectors such as manufacturing and agriculture.
African Business