The Kenyan government has set the price for shares in the Kenya Pipeline Company (KPC), preparing for one of the country’s largest initial public offerings as the state seeks to raise funds and deepen capital markets ahead of 2026.
The National Treasury announced that it will offer 11.81 billion ordinary shares to the public at 9.00 Kenyan shillings (US$0.062) per share. The sale represents a 65 percent stake in KPC and implies a total company valuation of roughly 1.13 billion U.S. dollars (approximately 163.5 billion shillings). The transaction is expected to generate US$730 million dollars (106.3 billion shillings) in proceeds for the government.
The pricing was disclosed alongside the release of the information memorandum by the Privatisation Authority, formally initiating the process for both institutional and retail investors, including Kenyan citizens, to acquire a stake in the strategic energy infrastructure firm.
Officials say the IPO forms part of a broader strategy to reduce the state’s involvement in commercial enterprises, improve corporate governance, and mobilize resources to support public finances. The government has emphasized that Kenyan citizens will be given priority in allocation, consistent with previous public offerings of state assets. Details on subscription rules, minimum allocations, and timelines will be announced closer to the IPO launch.
KPC operates the country’s petroleum pipeline network, transporting fuel from the port of Mombasa to key consumption centres across Kenya, as well as to Uganda, Rwanda, and parts of eastern Democratic Republic of Congo. The company’s monopoly in pipeline transport, combined with stable revenues from fuel handling, has made it one of Kenya’s most commercially viable state-owned enterprises.
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The government indicated that the valuation of KPC considered the company’s asset base, projected cash flows, strategic importance, and prevailing market conditions. Officials said the offer price balances maximizing value for the state with ensuring the IPO remains attractive to investors, including pension funds, insurance companies, and retail participants.
Market analysts expect the KPC IPO to significantly boost activity on the Nairobi Securities Exchange, which has seen few large listings in recent years. The offering could enhance liquidity, attract foreign portfolio inflows, and provide Kenyan investors with a tangible opportunity to participate in a strategically important sector.
The listing also forms part of a wider reform of state-owned enterprises aimed at improving efficiency, transparency, and accountability. By listing on the stock exchange, KPC will be subject to stricter disclosure requirements and market oversight, potentially strengthening long-term operational performance.
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However, the sale has drawn scrutiny from labor unions and political figures concerned about the privatisation of a strategic national asset and its potential impact on employment and fuel costs. The government has reassured stakeholders that regulatory oversight will remain in place, and that pipeline tariffs will continue to be set under the current framework.
The KPC IPO is expected to be a landmark transaction in Kenya’s capital markets and a test case for future privatisations of state-owned enterprises. With the price now set, attention will shift to investor demand and market conditions ahead of the anticipated 2026 listing.
