President Ruto proposes 120 billion shilling infrastructure fund through sale of Kenya Pipeline shares

President William Ruto has outlined a proposal to secure 120 billion shillings for infrastructure development by selling a stake in the state-owned Kenya Pipeline Company. Speaking during the ground-breaking ceremony for the 61-kilometre Ikonge-Chabera road in Nyamira County, the President indicated that the funds would be directed toward stalled road projects across the country.

The plan involves listing a portion of the Kenya Pipeline Company on the Nairobi Securities Exchange. Under the proposed arrangement, the government intends to retain a 51 percent controlling interest in the utility while opening up the remaining 49 percent to private investors. This move is part of a broader strategy to leverage state assets to bridge the financing gap in the transport sector without increasing the national debt.

Ruto noted that the proceeds would specifically target the completion of roads that have remained unfinished due to budget constraints. He stated that the government has identified various infrastructure projects that require immediate funding to ensure they serve the public as intended. The Kenya Pipeline Company, which manages the country’s fuel transport infrastructure, is considered one of the most profitable state corporations, making its shares a significant asset for capital raising.

The President also addressed the issue of pending bills and the slow pace of construction in several regions. By utilizing the stock market to liquidate value from the pipeline company, the administration aims to create a dedicated pool of resources for the Ministry of Roads. This approach reflects a shift toward alternative financing models as the government faces pressure to reduce traditional borrowing while maintaining the pace of national development.