Uganda and Rwanda Step In to Buy KPC Shares as Kenya Retains 35% Stake

The National Treasury has officially received more than KSh 103 billion from the sale of shares in the Kenya Pipeline Company (KPC), marking a major step in the government’s privatisation programme.

The money was formally handed over by the Privatisation Authority to Treasury Cabinet Secretary John Mbadi on Thursday.

Speaking during the handover, the authority said the transaction was a major success and an important moment for Kenya’s economy.

According to the government, this was the country’s first electronic Initial Public Offering (eIPO), giving Kenyans and regional investors a chance to own part of one of the country’s key state companies.

CS Mbadi welcomed the handover and said the move shows the government’s commitment to transparency and proper management of public resources.

The government sold 65 per cent of KPC shares to raise funds for national development projects, while retaining a 35 per cent stake in the company.

A large number of the shares were bought by Kenyan investors and local institutions. However, regional countries also showed strong interest, with Uganda and Rwanda purchasing a significant number of shares.

Reports indicate that investors from the East African region, led by Uganda and Rwanda, acquired a combined stake of more than 21 per cent, showing growing regional confidence in Kenya’s infrastructure sector.

The funds raised from the sale will now be channelled to the National Infrastructure Fund (NIF).

The government plans to use the money to finance key projects across the country, including the planned expansion and beautification of Jomo Kenyatta International Airport (JKIA), which is expected to begin in June.

The successful KPC share sale is seen as a major boost to the government’s efforts to raise money without increasing taxes, while also allowing both local and regional investors to participate in the country’s economic growth.