Kenya has officially launched the sale of a 65% stake in its state-owned oil pipeline operator, Kenya Pipeline Company (KPC), in a move aimed at raising 106.3 billion Kenyan shillings (about US$825 million) and reshaping the country’s state asset landscape.
The offering, which opened on Monday, is set to become the largest initial public offering ever undertaken in East Africa in local-currency terms if fully subscribed. It forms a central pillar of President William Ruto’s broader strategy to reduce government ownership in commercial enterprises, unlock capital for infrastructure development, and seed a new sovereign wealth fund.
Under the offer structure, shares are priced at 9 Kenyan shillings each, equivalent to roughly US$0.07. The government is targeting both domestic and international investors, with trading scheduled to begin on the Nairobi Securities Exchange on 9 March, following the close of the offer on 19 February.
Kenya Pipeline Company operates the country’s critical petroleum transportation infrastructure, including a network of pipelines and storage facilities that move refined fuel from the coastal port of Mombasa to inland depots serving Kenya and neighbouring landlocked countries such as Uganda, Rwanda, Burundi and South Sudan. The company plays a strategic role in regional energy security and logistics, making the IPO one of the most closely watched listings in recent years.
According to government officials, proceeds from the sale will be channelled into infrastructure projects and the establishment of a sovereign wealth fund designed to stabilise public finances and support long-term development. Kenya has been under pressure to strengthen revenues and manage rising public debt, with multilateral lenders urging fiscal consolidation and structural reforms.
The IPO also signals a renewed push to deepen Kenya’s capital markets. If successful, it will surpass the landmark 2008 Safaricom listing, which raised approximately $388 million and remains the country’s most iconic flotation. Market analysts say the KPC listing could broaden investor participation on the Nairobi Securities Exchange and improve liquidity, particularly if pension funds and retail investors take significant positions.
The offering comes alongside other divestment plans announced by the Ruto administration, including a reduction of the state’s stake in telecommunications giant Safaricom. Together, these moves reflect a shift toward private-sector-led growth and a reduced direct role for government in commercially viable enterprises.
Investor interest will be shaped by KPC’s revenue stability, regulatory environment and long-term demand for fuel transport across East Africa. While the global energy transition poses long-term questions for fossil fuel infrastructure, Kenya and its neighbours are expected to rely on petroleum products for years, supporting near- to medium-term demand for pipeline services.
The government has framed the IPO as both a financial and symbolic milestone, signalling confidence in Kenya’s economic reform agenda and its capital markets at a time of global uncertainty and tighter financial conditions.
