The National Treasury officially launched an offer for sale of 11.81 billion shares of the Kenya Pipeline Company (KPC) on Monday, 19th January 2026, seeking to raise KES 106.3 billion. The 11.81 billion shares represent 65% of the issued ordinary shares of Kenya Pipeline, and the offer is expected to close on 19th February 2026 at 1700H EAT.
The Initial Public Offering (IPO), which is one of the biggest state assets listings, marks a major milestone for both the Nairobi Securities Exchange (NSE) and the Government of Kenya. The offering, which has received regulatory approval from the NSE and the Capital Markets Authority (CMA), is expected to deepen Kenya’s capital markets, enhance liquidity, and give investors an opportunity to own a stake in the upstream energy firm. The government’s partial exit in KPC is also expected to unlock the full potential of the enterprise while boosting operational efficiency.
Additionally, it marks a major achievement in the government’s divestiture programme, and according to the Cabinet Secretary for The National Treasury of Kenya, FCPA John Mbadi, the proceeds of the IPO will go towards formation of the seed capital of the National Infrastructure Fund (NIF) that is set to invest in critical national infrastructure including airports, roads, irrigation, and energy projects.
Through the IPO, 11.81 billion shares are on offer at a price of KES 9.00 per share, implying a market capitalization of KES 163.6 billion. Share allocation has been structured across six investor segments: local retail investors, local institutional investors, East African Community investors, international investors, Oil Marketing Companies (OMCs), and KPC employees. The oil transporter has allocated 20% each to local retail investors, local institutional investors, and East African Community investors, while OMCs and KPC employees have been allocated 15% and 5%, respectively.
The offer brings to an end a 10-year IPO drought at the NSE, with the last public share sale in 2015 when Stanlib Fahari I-REIT issued 625 million shares at a price of KES 20 per share.
The transaction is being led by Faida Investment Bank, a leading investment bank in Kenya, in collaboration with a consortium of advisers including Dyer & Blair (Lead Sponsoring Broker), Francis Drummond &Co. (Co-Sponsoring broker), TripleOKLaw and G&A Advocates (Legal advisers), PwC (Reporting Accountant), Image Registrars (Shares Registrar), Belva digital (Advertising Agency), Apex Porter Novelli (PR Agency), and receiving banks Co-operative Bank of Kenya, Kenya Commercial Bank and Stanbic Bank Kenya.
If fully subscribed, KPC’s IPO will be the among largest in Kenya’s history. The company is set to be listed on the NSE on March 9, 2025, trading on the Main Investment Market Segment (MIMS) under the ticker KPC.0000.
KPC FY25 Performance
The Kenya Pipeline Company operates the country’s primary petroleum transportation and storage network, moving fuel from the port of Mombasa to consumption and distribution centers across the country and the wider region.
In the year ended June 30, 2025, KPC recorded revenues of KES 38.59 billion and a net profit of KES 7.49 billion. Earnings per share stood at KES 0.412. The company paid a dividend of KES 0.347 per share. With Earnings Per Share at KES 0.412 and the IPO offer price at KES 9.00 brings the PER at 21.8X, which is a steep valuation as compared to peers trading on the energy segment at the NSE.
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