The Government has launched the Kenya Pipeline Company Limited (KPC) Initial Public Offering (IPO) at the Nairobi Securities Exchange, marking the country’s largest IPO and the first fully electronic public offer in Kenya’s capital markets history.
The transaction, which offers 65 percent of KPC’s issued ordinary shares to the public at an offer price of Sh9.00 per share, opens ownership of one of Kenya’s most strategic energy infrastructure assets to local, regional, and international investors.
It also represents the Government’s first state-led market listing in 17 years, following the Safaricom IPO of 2008.
The IPO aligns with the Government’s broader economic agenda aimed at strengthening macro-economic stability, reducing the burden on taxpayers, and de-risking public investments through market-driven reforms.
Proceeds from the offer will be applied within the national budget framework as seed capital for priority national infrastructure, strategic investments, and fiscal consolidation.
Anchored by KPC’s strong fundamentals including revenues of Sh38.6 billion and after-tax profits of Sh10.37 billion for the financial year ended 30 June 2025, and supported by its 1,300-kilometre pipeline network that underpins national energy security and regional trade, the IPO marks a defining step in transforming a profitable state enterprise into a people-owned company while strengthening long-term economic resilience.
The transaction has been spearheaded by the National Treasury under the leadership of CS John Mbadi, working closely with regulators and capital market institutions to ensure transparency, strong governance, and broad public participation.
Speaking when he presided over the launch, Mbadi said the IPO clears the path for the eventual listing of KPC and signals a renewed and deliberate commitment by the Government to deepen Kenya’s capital markets as a central pillar of economic growth.
He emphasised the mutually reinforcing relationship between economic development and capital market advancement, noting that well-functioning markets mobilise capital, catalyze investment, and strengthen market institutions.
The listing of KPC, he observed, will broaden the universe of investable assets at the NSE, attract both domestic and international institutional investors, and stimulate increased inflows of portfolio capital into the economy.
“Privatisation through public listings is among the key financial reforms we are deploying to deepen and modernise our capital markets. The decision to divest a portion of Government shareholding in KPC through an IPO reflects the growing strength and maturity of our economy,” the CS said, adding that the listing will usher the company into a new era of enhanced corporate governance, transparency, and market discipline.
From a public finance perspective, the CS framed the transaction as one of asset optimization rather than asset disposal, noting that while public ownership in mature enterprises preserves equity value, it may not always deliver the highest social return at a time when the economy requires accelerated investment in infrastructure. The IPO therefore seeks to convert part of a concentrated equity holding into diversified national capital capable of supporting growth across multiple sectors.
He further noted that Kenya must complement traditional budget financing instruments, debt and taxation, with innovative alternatives. In this regard, the IPO responds to public sentiment expressed during consultations on the 2025/2026 Finance Bill, where Kenyans called for development-oriented financing approaches that reduce reliance on excessive borrowing.
Proceeds from the offer will provide seed capital for the National Infrastructure Fund, which will be channeled into priority investments in energy, roads, water, airports, and other strategic sectors. The Fund is expected to bridge institutional capital with public projects, scale up infrastructure delivery, and reinforce the foundations for sustained long-term economic expansion.
The CS also highlighted ongoing state corporation reforms being undertaken by the National Treasury, aimed at repositioning the Government towards policy formulation and regulation, while enabling a more mature private sector to efficiently undertake commercial activities.
On market conditions, he observed that the IPO is being launched amid strong momentum at the Nairobi Securities Exchange, where market capitalization surpassed Sh3 trillion in November 2025 and benchmark indices recorded double-digit growth in the six months to June 2025, demonstrating the market’s depth and capacity to absorb a transaction of this scale.
Addressing investors in particular, the CS invited Kenyans to participate in the offer for sale of 11.8 billion ordinary shares, describing it as the largest IPO ever undertaken in East Africa.
He encouraged prospective investors to review the Information Memorandum and open Central Depository System (CDS) accounts to participate in Kenya’s first fully electronic IPO.
“This offer provides Kenyans and the wider investing community with a unique opportunity to become co-owners of Kenya Pipeline Company and to share in a compelling national success story,” he said.
The launch was attended by PSs Chris Kiptoo (the National Treasury), Hassan Abubakar (Investment Promotion), Mohammed Liban (Petroleum), KPC CEO Joe Sang, MD Privatisation Authority Dr. Janerose Omondi, and Director-General of the Public Investments Portfolio Management Authority, Lawrence Kibet, among other senior Government and market stakeholders.
By Joseph Ng’ang’a
