Kenya Pipeline Company (KPC) has launched its initial public offering (IPO), offloading a 60 percent stake to the public in a transaction expected to raise Sh106.3 billion if fully subscribed.
The sale of KPC ordinary shares, priced at Sh9 each, not only puts the current value of the pipeline firm at Sh163.56 billion but also opens its ownership to local, regional, and international investors.
The listing also ends a 17-year government-backed listing drought at the Nairobi Securities Exchange, following the Safaricom IPO of 2008.
“The offer represents a decisive step in transforming a profitable state enterprise into a people-owned company while strengthening long-term economic resilience,” National Treasury Cabinet Secretary (CS) John Mbadi said on Monday, January 19, when the IPO opened.
The CS added that while the IPO signals a renewed commitment to deepening Kenya’s capital markets as a central pillar of economic growth, mobilizing capital, attracting investment, and strengthening market institutions are no longer optional.
“The move is an asset optimisation rather than asset disposal, converting part of a concentrated public equity holding into diversified national capital to support growth across multiple sectors,” Treasury said, noting that the trading, which is set to begin this March, also aligns with public calls during the 2025/2026 Finance Bill consultations for development financing approaches that reduce reliance on excessive borrowing.
“Proceeds will provide seed capital for the National Infrastructure Fund, supporting investments in energy, roads, water, airports, and other strategic sectors,” he said.
For the year ended June 30, 2025, KPC recorded Sh38.6 billion in revenues and after-tax profits of Sh10.37 billion.
