The National Treasury Cabinet Secretary, Hon. John Mbadi, has announced that the government is exploring the possibility of listing the Kenya Pipeline Company (KPC) on the Nairobi Stock Exchange (NSE) through an Initial Public Offering (IPO).
The announcement was made as Mr. Mbadi received an interim dividend cheque of KES 3 billion from KPC Board Chair Mrs. Faith Boinett for the half-year ending December 2024. This brings the total dividends paid by KPC to the National Treasury in the last 12 months to KES 10.5 billion.
The Treasury CS highlighted that a public listing would allow KPC to leverage the benefits enjoyed by other publicly traded entities such as Safaricom and KenGen. According to him, listing would:
- Provide liquidity and capital to support KPC’s regional expansion.
- Allow Kenyans to own shares in KPC.
- Enhance corporate governance and transparency in the company’s operations.
KPC’s Expansion and Diversification Plans
As part of its growth strategy, KPC is planning to establish a trading hub for petroleum and petroleum products in Mombasa. This initiative aims to strengthen the regional oil and gas industry by improving logistics and supply chain efficiencies.
Additionally, the Treasury CS confirmed that the government is moving forward with plans to wind down Kenya Petroleum Refinery Limited (KPRL) and integrate it into KPC. The transition, which has been delayed, will now be completed within the current financial year.
The Director General of Public Investments and Portfolio Management, Mr. Lawrence Kibet, announced that the Government Owned Enterprises (GOE) Bill 2024 had been approved by the Cabinet and is currently under review by the Attorney General. The bill aims to:
- Enhance commercial viability of state-owned enterprises.
- Reduce bureaucratic red tape.
- Ensure state firms operate efficiently and generate strong returns for taxpayers.
KPC has demonstrated strong financial performance, recording a KES 10.1 billion Profit Before Tax (PBT) in FY 2023-24, a 32.9% year-over-year increase from KES 7.6 billion in the previous year. Over the last decade, KPC has paid KES 63 billion in taxes and dividends to the government.
Mrs. Boinett credited KPC’s efficiency and diversification—including investments in fiber optic cables (FOC) and liquefied petroleum gas (LPG)—for its financial success. She emphasized that KPC continues to dominate fuel transportation in Uganda (90% market share) and is close to securing a similar stake in Rwanda.
KPC’s pipeline operations have led to:
- 37% increase in Mombasa-Nairobi pipeline flow rates.
- 20% increase in Nairobi-Western Kenya pipeline flow rates.
- Elimination of 22,100 trucks per month from roads, reducing carbon emissions by 4.48 million tons of CO₂ annually.
With a strong financial position, regional expansion plans, and diversification into new revenue streams, KPC’s potential listing on the NSE could unlock new opportunities for growth, investment, and transparency. The National Treasury remains committed to supporting KPC’s transformation into a competitive, profitable, and publicly-owned enterprise.
