Kenyans Can Now Buy KPC Shares from as Low as Ksh 900

Kenyans have been offered a rare opportunity to become shareholders in the Kenya Pipeline Company (KPC) following the launch of a major public share offer that allows participation from as little as Ksh.900.

Under the offer, KPC shares are priced at Ksh.9 each, with investors required to purchase a minimum of 100 shares. The initiative is expected to attract over two million Kenyans, making it one of the largest public ownership programmes in the country in recent years.

The government plans to sell 65 per cent of its stake in KPC, translating to about 11.8 billion shares. The move is part of efforts to increase citizen participation in the capital markets while raising non-tax revenue for the State.

KPC says the offer allows ordinary Kenyans to take part in the ownership of a key national asset while supporting the growth of the capital markets and helping unlock the company’s long-term value.

Transaction advisor Dr Kenne Belgrad noted that the company is projected to post strong profits, estimating net earnings of between Ksh.9.6 billion and Ksh.9.7 billion by the end of the financial year. With a dividend payout policy set at 50 per cent, investors could share close to Ksh.5 billion in dividends, translating to an estimated yield of about three per cent.

To make the process accessible, the share sale will be conducted through a fully digital e-IPO platform. Kenyans can apply using their mobile phones by dialling *483816# and complete payments via M-Pesa. Online applications and payments are also available, eliminating paperwork, queues, and delays associated with previous public offers.

Investors have been assured of KPC’s strong financial position. Dr Belgrad revealed that the company is holding Ksh.16.2 billion in cash and carries minimal debt. He explained that the Ksh.3.3 billion listed as borrowed funds is largely short-term and does not significantly affect the company’s stability.

KPC leadership believes privatisation will improve decision-making and operational efficiency. Managing Director Joe Sang said moving away from lengthy government approval processes will allow the company to respond faster to market opportunities.

According to Sang, decisions that should take a few days currently stretch into months due to approvals required from multiple government offices, a situation expected to change once privatisation is complete.

Dr Belgrad echoed this view, saying the transition will free the company from restrictive public finance regulations, allowing it to grow more aggressively and competitively.

Kenyans have been encouraged to take advantage of the offer before it closes on February 19, ahead of trading expected to begin in March. The government is targeting to raise about Ksh.103 billion from the sale.