Kenya has launched the sale of a majority stake in its state-owned oil pipeline operator, aiming to raise about 106.3 billion shillings (US$825 million) in what officials say will be East Africa’s largest-ever initial public offering.
The government on Monday began offering 65 percent of Kenya Pipeline Company (KPC) to the public as part of President William Ruto’s broader push to reduce state ownership in commercial enterprises, raise capital for infrastructure development and seed a planned sovereign wealth fund.
According to offer documents, the shares have been priced at nine shillings each. The offer period will run until February 19, with trading expected to begin on the Nairobi Securities Exchange on March 9.
If fully subscribed, the KPC listing would eclipse Kenya’s previous record IPO the 2008 sale of shares in telecoms operator Safaricom which raised 50 billion shillings and remains one of the most widely held stocks in the country.
Treasury officials said proceeds from the sale would be used to support infrastructure investment and strengthen public finances at a time when Kenya faces rising debt-servicing costs and pressure to reduce fiscal deficits.
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The divestment forms part of a broader privatisation and asset-recycling programme under the Ruto administration. In addition to the pipeline company sale, the government has announced plans to reduce its stake in Safaricom and other state-linked firms, arguing that private-sector participation will improve efficiency, governance and access to capital.
Kenya Pipeline Company operates the country’s fuel transportation network, moving refined petroleum products from the port of Mombasa to major consumption centres including Nairobi, Eldoret and Kisumu. The company plays a critical role in supplying fuel to Kenya and neighbouring landlocked countries such as Uganda, Rwanda, Burundi and South Sudan.
Officials have described KPC as a commercially viable and cash-generating asset, making it suitable for partial privatisation. The company has benefited in recent years from steady fuel demand growth, expansion of storage capacity and its strategic position in the regional energy supply chain.
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The IPO launch comes against a backdrop of renewed global investor interest in equities. According to data from LSEG, global equity capital markets activity reached US$738.4 billion in 2025, up US15% from the previous year and marking the strongest annual performance in four years.
Issuers in Europe, the Middle East and Africa accounted for just over a fifth of that total, suggesting improved conditions for capital raising in emerging and frontier markets. Kenyan officials have said the timing of the KPC offering reflects confidence that both local and international investors are ready to re-engage.
Market participants say the success of the IPO will depend on pricing, investor appetite for state-linked assets and broader confidence in Kenya’s economic reforms. The country has faced challenges including currency volatility, rising inflation pressures in recent years and concerns over public debt levels.
President Ruto’s government has sought to reassure investors by committing to fiscal consolidation, tax reforms and measures to boost exports and domestic production. Officials argue that reducing the state’s footprint in commercial enterprises will help unlock private capital and reduce pressure on the budget.
The Nairobi Securities Exchange, which has struggled with low liquidity and limited new listings in recent years, is expected to benefit from the deal. A successful KPC IPO could deepen the market, attract new retail investors and revive interest among foreign funds.
Analysts say the listing could also serve as a benchmark for future privatisations in the region, where governments have often been reluctant to relinquish control of strategic assets despite fiscal constraints.
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For Kenya, the pipeline company sale represents a test case for balancing state interests with market discipline. While the government will retain a minority stake, officials say safeguards have been built into the structure to protect national energy security and ensure continued oversight.
The offering marks a significant moment for Kenya’s capital markets and could reshape the region’s investment landscape if investor demand proves strong.
