Kenya Pipeline Company (KPC), a 52-year success story, is set to further support national development through the Government of Kenya’s divestiture programme. The Government is offering 65 percent of its stake in the Company through the ongoing Initial Public Offering (IPO) of 1,812,644,350 ordinary shares, at a price of Ksh9 per share, with a par value of Ksh0.02.
In a letter contained in the IPO Information Memorandum, Cabinet Secretary for the National Treasury and Economic Planning, Mr John Mbadi, explains that a key objective of the privatisation programme is ‘to broaden the shareholding of state-owned corporations among Kenyans, deepen the capital markets, and raise resources for infrastructure development.’
Mr Mbadi further points out that KPC, a leading oil and gas infrastructure company in Kenya, has experienced significant growth in recent years. ‘As a result, KPC is one of the most profitable companies wholly owned by the Government of Kenya, and has contributed substantially to the national budget,’ he says.
Last year, President William Ruto articulated his ambition to steer Kenya towards a development trajectory comparable to Singapore, one of Asia’s ‘Tiger Economies’ and a globally recognised model of economic transformation. The proceeds from the sale of the Government’s shares in KPC will therefore be applied primarily to funding infrastructure development, positioning Kenya firmly on course to realise this national aspiration.
The IPO is expected to generate gross proceeds of approximately Ksh106.31 billion, assuming full subscription. These funds will form part of the Government’s approved financing plan for the 2025/26 financial year and will be deployed in line with the national budget framework and fiscal policy priorities. Allocation will focus on commercially viable infrastructure investments, particularly in energy, roads, water and irrigation, and airports.
At the same time, Kenyans who participate in the IPO will have the opportunity to share in KPC’s strong financial performance. Investors stand to benefit from dividends supported by the company’s robust profitability and sound financial position.
For the financial year ended June 30, 2025, KPC recorded revenues of Ksh38.59 billion and profit after tax of Ksh7.49 billion, underscoring its solid earnings capacity and resilient balance sheet. The IPO is structured across five investor pools:
Kenyan Investors
East African Community (EAC) Investors
Oil Marketing Companies
KPC Employees
International Investors.
The Offer Price was determined using earnings multiples. This approach reflects KPC’s ability to generate sustainable earnings and dividends. It also aligns with investor decision-making on the Nairobi Securities Exchange, which is strongly driven by earnings and dividend considerations, and ensures transparency and comparability with regional and global infrastructure peers.
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