The National Treasury has officially launched the Kenya Pipeline Company (KPC) Initial Public Offering (IPO) at the Nairobi Securities Exchange (NSE), marking a historic milestone in Kenya’s capital markets and state-owned enterprise reform agenda.
Under the transaction, 65 percent of KPC’s issued share capital, equivalent to 7.68 billion ordinary shares out of a total 11.81 billion shares, will be offered to the public at a price of Sh9 per share. This places the gross value of the offer at approximately Sh69 billion, making it the largest IPO ever undertaken at the NSE and the first to be fully executed through electronic application platforms.
The IPO opens up ownership of one of Kenya’s most strategically important energy infrastructure companies to Kenyan retail investors, institutional investors, regional investors from the East African Community and international investors, significantly broadening participation in the country’s infrastructure assets.
The offer period opens today, January 19, 2026, and will run until February 19, 2026. Trading of KPC shares on the Nairobi Securities Exchange is expected to commence on March 9, 2026, subject to the successful completion of the offer and regulatory processes. The overall IPO and privatisation process is expected to conclude by March 31, 2026.
A cornerstone of public sector reform
The KPC IPO represents a central plank of the Government’s broader state-owned enterprises reform and privatisation programme, which aims to improve governance, unlock value in public assets and reduce fiscal pressure on the Exchequer.
Speaking at the launch ceremony in Nairobi, National Treasury Cabinet Secretary FCPA John Mbadi said the transaction marks a shift in how the Government manages and finances strategic state corporations.
“This IPO is about transforming a wholly owned state enterprise into a people-owned company,” Mr Mbadi said. “By opening Kenya Pipeline Company to public ownership, we are strengthening the company, deepening our capital markets and giving Kenyans the opportunity to participate directly in one of the country’s most strategic infrastructure assets.”
He added that the offer provides both local and global investors with a rare opportunity to become co-owners of a critical national utility that plays a central role in energy security and regional trade.
The IPO is being implemented under the oversight of the Privatisation Authority, with regulatory approvals already granted by the Capital Markets Authority (CMA) and the Nairobi Securities Exchange.
Riding strong market momentum
The Government is bringing the KPC offer to market at a time of renewed momentum at the NSE, following a sustained rally in equities during 2025.
“We are coming to the market at a time of strong momentum at the NSE, with market capitalisation crossing Sh3 trillion in November 2025,” the Treasury said in its statement. “This rally demonstrates the depth and resilience of our capital markets to absorb a transaction of this magnitude.”
Market analysts say the timing of the offer is critical, as improved investor sentiment, increased participation by retail investors and a more stable macroeconomic environment have helped restore confidence in Kenya’s capital markets.
If fully subscribed, the IPO is expected to significantly boost market capitalisation, liquidity and trading activity at the bourse, while setting a benchmark for future privatisations and large-scale listings.
Employee ownership and inclusive participation
In addition to the public offer, the IPO includes an Employee Share Ownership Plan (ESOP), under which five percent of the total offer shares have been reserved for eligible KPC employees.
The ESOP is designed to allow employees to participate directly in the company’s future growth and align staff interests with long-term performance and governance outcomes.
Treasury officials said the employee allocation reflects international best practice in privatisation programmes, where workforce participation is seen as a tool for enhancing accountability, productivity and organisational stability.
The offer structure also makes provision for participation by oil marketing companies and strategic industry players, alongside retail and institutional investors, ensuring broad-based ownership across the energy value chain.
Use of proceeds and fiscal impact
Proceeds from the IPO will accrue directly to the Government of Kenya and will be applied in line with the national budget framework and fiscal policy priorities.
According to the Treasury, the funds will support priority economic and social programmes, strategic infrastructure development and fiscal consolidation efforts. The gross proceeds will form part of the Government’s approved financing plan for the 2025/26 financial year.
Resources are expected to be channelled toward commercially viable infrastructure investments, particularly in the energy, roads, water and irrigation, and airports sectors.
By monetising part of its stake in KPC, the Government aims to reduce reliance on debt financing while still retaining a significant ownership position in the company.
Privatisation Authority backs transparency
Privatisation Authority chairman Faisal Abass described the KPC IPO as a defining moment for Kenya’s public sector reform efforts.
“This IPO demonstrates how privatisation can be undertaken transparently, competitively and in the public interest,” Mr Abass said. “By leveraging market mechanisms and digital platforms, we are ensuring broad access, strong governance and long-term value creation for both investors and the Kenyan economy.”
The use of electronic application platforms is expected to widen access for retail investors, particularly younger and digitally savvy participants, while reducing administrative costs and processing times.
Investors can apply electronically through authorised selling agents, licensed stockbrokers and approved digital IPO platforms throughout the offer period.
A profitable and strategic asset
Kenya Pipeline Company is one of the country’s most profitable state-owned enterprises, underpinned by its monopoly position in petroleum transportation and storage.
For the financial year ended June 30, 2025, KPC reported revenues of Sh38.6 billion and after-tax profits of Sh10.37 billion, highlighting its strong cash generation and operational efficiency.
The company operates a critical network of more than 1,300 kilometres of pipeline infrastructure, transporting refined petroleum products from the port of Mombasa to key consumption centres across the country and the wider region.
Its assets play a central role in ensuring national energy security, stabilising fuel supply and supporting regional trade flows to neighbouring countries.
Investor outlook
Market participants are expected to closely scrutinise KPC’s valuation, dividend policy and long-term capital expenditure plans as part of the investment decision-making process.
Analysts note that the company’s stable earnings profile, strategic importance and regulated operating environment are likely to appeal to long-term investors seeking exposure to infrastructure-linked cash flows.
At the same time, the IPO places greater emphasis on transparency, disclosure and corporate governance, as KPC transitions from a wholly state-owned enterprise to a publicly listed company accountable to a broad shareholder base.
A turning point for capital markets
Beyond KPC itself, the IPO is widely seen as a test case for Kenya’s ambition to use capital markets as a primary vehicle for financing development and reforming state enterprises.
If successful, it could pave the way for additional listings of large public assets, deepen the NSE’s role in the regional financial system and reinforce Nairobi’s position as East Africa’s leading capital market hub.
As the offer period begins, all eyes will be on investor appetite for one of Kenya’s most closely watched privatisations in decades.
