Treasury Cabinet Secretary John Mbadi Ng’ongo has degazetted Kenya Pipeline Company PLC as a parastatal, revoking its status as a National Government Entity.
In a Gazette notice dated April 22, 2026, Mbadi said the revocation was effected in line with his powers under the Public Finance Management Act (Cap. 412A).
The revocation was effected pursuant to section 4(1) of the Act, read together with regulation 211(7) of the Public Finance Management (National Government) Regulations.
The decision removes Kenya Pipeline Company PLC from the list of National Government Entities that had been established under Legal Notice No. 33 of 2015. This list had classified various state corporations and agencies as part of the national government structure, subjecting them to specific oversight, financial controls, and reporting frameworks.
The revocation signals the end of the Company’s formal classification as a state organ, effectively altering the legal framework under which it operates. As a result, Kenya Pipeline Company PLC will no longer be governed as a National Government Entity under public finance laws that apply to state corporations.
Shift Follows Ownership Changes
The move comes in the wake of broader structural changes within the Company, particularly its transition in ownership. While the Government of Kenya still retains a minority stake, the Company now operates under a different framework that reflects its revised shareholding structure.
This shift necessitated a change in legal status to align with the current operational and governance model. By revoking its classification as a National Government Entity, the Treasury has effectively repositioned the Company within a commercial and regulatory environment distinct from traditional state corporations.
The Company, which was incorporated in 1973 and began operations in 1978, has historically played a central role in the transportation of petroleum products across East Africa. Its network of pipelines, storage depots, and terminals remains critical to regional energy supply chains and economic activity.
Regulatory Realignment
The revocation underscores a broader regulatory realignment, where entities transitioning away from full government control are reclassified to reflect their evolving roles. In this case, Kenya Pipeline Company PLC is no longer subject to the same public sector classification that governed its financial and administrative operations for decades.
This development places the Company outside the framework of entities traditionally considered part of the national government, signaling a shift toward a more commercially driven structure.
The change formally concludes the Company’s status as a National Government Entity, redefining its position within Kenya’s institutional and economic landscape.
