The National Treasury plans to raise KES 100 billion from the sale of a 65 percent stake in Kenya Pipeline Company (KPC) to private investors via an Initial Public Offering (IPO) on the Nairobi Securities Exchange (NSE). This could end the 10-year drought of zero listings through IPOs at the Nairobi Bourse, with the last listing being of Stanlib Fahari REIT in 2015.
“The National Treasury expects to raise approximately KES 100 billion from the transaction. Transaction advisors in the IPO will be compensated of fixed fees, payable or due diligence and structuring, and success fees linked to the successful completion of the offering,” the treasury states in sessional paper No.2 2025.
On July 29, the Cabinet gave a nod to the privatization plan of KPC. On August 5, the National Assembly invited the public to submit their opinions on the privatization as required by the constitution.
“Now therefore, in compliance with Article 118(1) (b) of the constitution, the clerk of the National Assembly hereby invites the public to submit memoranda on the Sessional paper to the Departmental Committee of Energy and the Public Debt and Privatization Committee,” read the notice.
While addressing the Public Debt and Privatization Committee, Cabinet Secretary of the National Treasury, Hon John Mbadi, said that the divestiture of the company will optimize returns. In the year ended June 2024, Kenya Pipeline Company paid KES 7 billion in dividends to the National Treasury. Additionally, in February 2025, the National Treasury received KES 3 billion in dividends for the half year 2024/2025 from KPC. In the year ended June 2024, KPC recorded revenue of KES 35.37 billion, a 14.6% increase from KES 30.86 billion in 2023. Net profit stood at KES 6.87 billion, up by 52.7% from KES 4.5 billion in 2023.
Also Read: Cabinet Approves Kenya Pipeline Company’s Privatization
