Government Starts Public Sale of Kenya Pipeline in KSh 106 Billion Plan

The Kenyan government has officially launched the initial public offering (IPO) of the Kenya Pipeline Company (KPC), opening the door for public and institutional investors to own a majority stake in one of the country’s most strategic energy firms.

According to details released in the company’s information memorandum, the State is selling 65 per cent of KPC, translating to 11.81 billion ordinary shares in what is set to become one of the largest IPOs ever seen in Kenya’s capital markets.

Each share has been priced at KSh 9, a move that is expected to raise approximately KSh 106.3 billion from the sale. At this offer price, KPC’s total valuation stands at about KSh 163.56 billion, highlighting the scale and ambition of the transaction.

The IPO officially opened on January 19, 2026, and will run for a full month, closing on February 19, 2026. Authorities say the extended subscription period is designed to give investors enough time to participate, considering the size of the offer.

The government has outlined a broad allocation plan aimed at attracting a diverse investor base. Retail investors, institutional investors, and regional/East African Community (EAC) investors will each receive 20 per cent of the shares on offer. Oil marketing companies (OMCs) have been allocated 15 per cent, reflecting their strategic interest in the pipeline operator.

In the information memorandum, the offer is described as a sale of 11,812,644,350 shares with a par value of KSh 0.02, forming part of a public offer that represents a controlling stake in KPC.

Key Dates Investors Should Know

After the subscription window closes on February 19, the allocation results will be released on March 4, 2026. Successful applicants will be required to settle payments on guarantees by March 5, 2026.

Shares will be credited electronically to investors’ CDS accounts on March 6, the same day refunds will be issued to applicants who are unsuccessful or receive partial allocations. Trading of KPC shares on the Nairobi Securities Exchange (NSE) is expected to begin on March 9, 2026, subject to regulatory clearance.

The Capital Markets Authority (CMA) has noted that these timelines may change, but any adjustments will be announced publicly following approval.

Financial Snapshot of the KPC Offer

At the time of the offer, Kenya Pipeline Company has 18.17 billion issued ordinary shares, out of which 11.81 billion are being sold to the public. For the financial year ended June 30, 2025, the company reported an earnings per share (EPS) of KSh 0.4122 and a dividend per share (DPS) of KSh 0.347 after the share split.

KPC also posted an EBITDA of KSh 18.59 billion, placing the IPO at an implied EV/EBITDA multiple of 8.1 times, a metric often used by investors to gauge company value.

A Landmark Market Event

With a targeted raise of over KSh 100 billion, the Kenya Pipeline IPO ranks among the most significant public offers in the country’s history. The sale marks a major step in the government’s privatisation agenda and is expected to reshape ownership of one of Kenya’s most critical energy infrastructure assets.

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