Nairobi — Energy and Petroleum Cabinet Secretary Opiyo Wandayi has dismissed concerns that the sale of Kenya Pipeline Company (KPC) will cause fuel price instability.

Responding to the National Assembly during consideration of Sessional Paper No. 2 on the proposed privatization of KPC, Wandayi said the move is unlikely to affect local fuel prices, noting that petroleum prices in Kenya are regulated by the Energy and Petroleum Regulatory Authority (EPRA) through a three-year tariff model.

"We believe privatization of the company will not affect the current pricing mechanism, since EPRA will continue to regulate and monitor all aspects of the petroleum industry, including fair competition, consumer protection, product quality compliance, and equitable access to KPC's services across regions," Wandayi said.

A sessional paper tabled in Parliament indicates the State plans to divest 65 percent of its stake in the strategic energy utility, valued at about Sh120 billion, reducing its shareholding to 35 percent. The Treasury expects to raise approximately Sh100 billion from the IPO.

The government also intends to offer shares to KPC employees ahead of its planned listing on the Nairobi Securities Exchange (NSE) in September.