Kenya has opened the privatization of its state‑run petroleum transporter, Kenya Pipeline Company (KPC), through a landmark Initial Public Offering (IPO) expected to raise $824 million.
The transaction marks the country’s first large‑scale Electronic IPO (E‑IPO) and is being positioned as a once‑in‑a‑generation listing designed to revive retail participation, deepen market liquidity, and broaden citizen ownership of one of East Africa’s most strategic infrastructure assets.
Offer Structure and Timeline
| Detail | Information |
|---|---|
| Offer period | 19 Jan – 19 Feb 2026 |
| Trading start | 9 Mar 2026 |
| Segment | Main Investment Market Segment (MIMS), NSE |
| Shares offered | 11.81 billion |
| Offer price | KES 9.00 per share |
| Implied valuation | KES 163.6 billion |
| Government stake retained | 35% (24‑month lock‑in) |
| Ticker code | KPC.0000 |
A Historic Milestone for Kenya’s Capital Markets
If successful, the KPC IPO will be:
- The largest IPO on the NSE since Safaricom’s 2008 listing
- The first fully digitised E‑IPO in Kenya’s history
- One of the largest infrastructure privatisations in Africa in recent years
Valuation and Financial Strength
| Metric | Value |
|---|---|
| Target valuation | KES 154 billion |
| Implied listing valuation | KES 163.6 billion |
| Capital raise target | KES 106.3 billion |
| Post‑listing rank | 5th largest stock on NSE |
| Balance sheet | Debt‑free |
The offer price was set using an earnings‑based valuation methodology anchored on an EV/EBITDA multiple of 8.1x, aligned with regional and global infrastructure peers. Post‑listing, KPC is expected to access cheaper capital through corporate bonds to fund regional expansion and system upgrades.
Legal and Transparency Concerns
The IPO faces headwinds from legal challenges. Senator Okiya Omtatah has filed a petition arguing that the privatization lacked adequate public participation and failed constitutional requirements.
Former Central Bank of Kenya chairman Mbui Wagacha warned that “a lack of transparency could affect investor confidence,” raising fears that KPC may be undervalued.
High Court Suspends Kenya Pipeline Privatisation Over Legal Challenge
Strong Financial Performance (FY2024/25)
| Metric | Value |
|---|---|
| Revenue | KES 38.59 billion |
| Profit after tax | KES 7.49 billion |
| EBITDA | KES 18.59 billion |
| EPS (post‑split) | KES 0.4122 |
| Dividend per share (post‑split) | KES 0.347 |
| Dividends paid | KES 5.9 billion |
| Throughput | 10 billion litres |
| Balance sheet | Debt‑free |
KPC has committed to a 50% dividend payout policy post‑listing, positioning itself as a long‑term income stock for retail and institutional investors.
Share Allocation
| Investor Pool | Allocation |
|---|---|
| Kenyan retail investors | 20% |
| Kenyan institutional investors | 20% |
| Foreign investors | 20% |
| East African Community (EAC) investors | 20% |
| Oil Marketing Companies (OMCs) | 15% |
| KPC employees (ESOP) | 5% |
Regional Monopoly and Strategic Assets
| Region | Market Share |
|---|---|
| Uganda | 99% |
| South Sudan | 75% |
| Eastern DRC | 75% |
| Total footprint | 6 countries |
Operational scale:
Its infrastructure includes 1,342 km of pipelines, 1.14 million cubic metres of storage capacity, and full ownership of Kenya Petroleum Refineries Ltd (KPRL), which is being repositioned as a regional logistics and storage hub.
Governance and Safeguards
- Government retains significant board representation through its 35% strategic stake.
- Anti‑monopoly restrictions prevent KPC from engaging in petroleum importation or retail sales without prior approval from the Competition Authority of Kenya (CAK), Energy and Petroleum Regulatory Authority (EPRA), and the National Assembly.
Transaction Team
| Role | Institution |
|---|---|
| Lead Transaction Advisor | Faida Investment Bank |
| Lead Sponsoring Broker | Dyer & Blair |
| Co‑Sponsoring Broker | Francis Drummond |
| Reporting Accountant | PwC |
| Legal Advisors | TripleOKLaw & G&A Advocates |
| Banking partners | Co‑operative Bank, KCB Group, Stanbic Bank |
| Share Registrar | Image Registrars |
The KPC IPO represents a historic moment for Kenya’s capital markets, combining fiscal necessity with market innovation.
Positioned as the largest E‑IPO in the country’s history, it offers retail and institutional investors alike a chance to co‑own a strategic national asset—though legal challenges and transparency concerns remain potential hurdles to its success.
