An activist has petitioned the High Court seeking to suspend and nullify a newly enacted law by President William Ruto’s administration which seeks to privatize public assets including key parastatals such as the Kenya Pipeline Company (KPC).
The petition, filed by UK-based Kenyan activist Eliud Karanja Matindi before the Constitutional and Human Rights Division at the Milimani Law Courts, challenges the constitutionality of the Privatization Act, 2025.
He seeks interim orders suspending the statute pending the hearing of his case arguing that the Act violates the Constitution and threatens public ownership of vital national resources.
Matindi accuses Parliament of unconstitutionally passing the law without involving the Senate contrary to constitutional provisions that require both Houses to consider legislation affecting counties and public land.
In the detailed petition, Matindi argues that the Privatization Act, 2025, assented to by President Ruto on October 15, 2025, and which came into force on November 4, 2025, is unconstitutional both in procedure and content.
“The Privatization Act, 2025, violates and threatens to violate the Constitution, thereby making it unconstitutional, null and void,” states Matindi.
“The National Assembly is not the Parliament of Kenya as established under Article 93(1) of the Constitution. it cannot, on its own, enact an Act of Parliament that has provisions which the Constitution mandates shall be enacted by Parliament.”
The new law repealed the Privatization Act of 2005 and introduced a new Privatization Authority to oversee the sale of public corporations.
It allows the government to privatize public entities and transfer their assets or shares to private investors, with proceeds paid into the Consolidated Fund.
According to court documents, the petitioner claims that the new law gives the Executive sweeping powers to privatize public entities and dispose of state assets, including public land, without adequate parliamentary oversight.
He argues that Section 71 of the Act revives the privatization list published in Gazette Notice No. 8739 of 2009, which includes 26 public entities slated for sale, among them Kenya Pipeline Company Limited, whose privatization process is expected to be completed by March 31, 2026.
Matindi contends that allowing the privatization of public land contravenes Articles 60, 61, and 62 of the Constitution, which protect public land from conversion into private ownership.
“Privatization of public land is a violation of Article 60(1) of the Constitution,” he says.
“Once public land is privatized, it can no longer be held, used, and managed in a manner that is equitable, efficient, productive, and sustainable for the people of Kenya collectively.”
He further accuses Parliament of failing to clarify the status of land that may be sold through privatization, stating that the Act is “silent on whether such land will be held under freehold or leasehold tenure.”
“The people of Kenya should not have to second-guess which tenure will apply to public land converted into private upon privatization,” Matindi adds.
“This lack of clarity violates national values of good governance, transparency, and accountability.”
The activist also claims that several provisions of the law, including Sections 22(2)(d) and 32(3)(b), touch on national security issues, which, he argues, constitutionally require the joint involvement of both Houses of Parliament.
“As the Act was passed only by the National Assembly, it violated Articles 93 and 238(2)(a) of the Constitution, thereby rendering it unconstitutional,” he states.
He also faults Sections 64(4) and 66, which create offences to be investigated by the National Police Service, arguing that any law assigning functions to a national security organ must be passed by both Houses as per Article 239(6).
Matindi warns that proceeds from the sale of parastatals will likely be used to pay the national debt instead of benefiting citizens.
“It is a matter of public record that a significant percentage of revenue collected by the National Government is being used to pay national debt,” he says.
“It is therefore inevitable that proceeds from privatizations will be used to settle debt rather than for development or future generations.”
He further argues that privatizing state corporations would deprive future generations of public resources, contrary to Article 201(c) and (d), which require equitable sharing of resources across generations.
“Present generations will convert previously owned public resources to benefit only a small section of society, depriving future generations the opportunity to equally enjoy those benefits,” Matindi asserts.
The Privatization Act, 2025, which repeals the Privatization Act, 2005, establishes the Privatization Authority to replace the former Privatization Commission. It empowers the Treasury Cabinet Secretary to identify and approve public entities for sale, with all proceeds directed into the Consolidated Fund.
Matindi now wants the High Court to suspend the implementation of the Act pending the hearing and determination of his petition.
“It is in the overwhelming interest of the Constitution and the law that this petition be heard urgently to safeguard the integrity of public property such as Kenya Pipeline Company Limited and other listed entities, ” he says
Justice Lawrence Mugambi has certified the matter as urgent directing that the petition be served within three days and the government to file responses in equal time.
“I have read the Notice of Motion and direct that it be physically served within three days. Responses to be filed within three days from receipt,” ruled Justice Mugambi.
The case will be mentioned for directions before Justice Bahati Mwamuye on November 17, 2025.
