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The National Social Security Fund (NSSF) pumped Sh36.3 billion into the initial public offering (IPO) of Kenya Pipeline Company (KPC), unmasking the identity of the top shareholder who earlier opted to remain secret.

The State-backed pension scheme got a 22.2 percent stake in the freshly listed firm, making it the second-largest shareholder behind the government, regulatory documents seen by the Business Daily show.

About 90 percent of the top owners of KPC Plc bought their shares through proxies during the firm’s IPO, keeping the identity of the investors anonymous.

Regulatory filings show that 18 of the top 20 shareholders of KPC are under nominee accounts after demand from Kenyan institutional investors and the Ugandan government helped the IPO become oversubscribed.

Without the Sh36.3 billion from the NSSF and Uganda’s Sh33.8 billion, the IPO would have collapsed on failure to hit the success level.

It was required to sell shares worth Sh53.1 billion of the Sh106.3 billion shares that were on offer, in what was East Africa’s biggest IPO in local-currency terms.

The sale is part of President William Ruto’s drive to divest from State companies and seek new funding methods.

The government also reduced its stake in telecoms operator Safaricom by 15 percent in a deal worth Sh204 billion.

Of the top KPC shareholders, only the Uganda National Oil Company Limited (UNOC) and Kenya’s Unclaimed Financial Assets Authority (UFAA) are revealed as beneficial owners with 20.15 percent and 3.06 percent stakes, respectively.

Nominee accounts are registered to hold shares on behalf of the true owners, a structure used globally and at firms listed at the Nairobi Securities Exchange (NSE) to conceal the identity of beneficial owners.

The NSSF has split its stake under several nominee accounts, masking its position as the second-largest shareholder ahead of Uganda, which has a 20.15 percent stake, with the State keeping a 35 percent ownership.

‘The National Social Security Fund’s investment in Kenya Pipeline Company was Sh38.2 billion,’ said filings from the Retirement Benefits Authority (RBA) seen by the Business Daily.

‘The Sh38.2 billion investment in KPC is their largest investment in any listed equity.’

It holds a multi-billion shilling stake in KCB, MTN Uganda, East Africa Breweries Limited and Absa as part of its equity investment at the Nairobi bourse worth Sh168 billion in June, up from Sh109 billion in December.

The NSSF stake in KPC indicates that the State still enjoys majority given their combined ownership of 57. 2 percent.

This saw the NSSF given a seat on the board, with its managing trustee or alternate directors having joined KPC on July 30, 2026.

The IPO got a subscription rate of 105.7 percent despite earlier concerns over lower valuations from some banks, an extended offer period and reports of investor apathy.

Uganda, a landlocked neighbour that uses the pipeline to move its petroleum products, secured a 20.15 percent stake in the company during the IPO, earning it two board seats and veto over the hiring and firing of KPC chief executive.

The NSSF is flush with cash after the government raised the monthly contributions to the fund from a low of Sh400, including employers’ and employees’ share, in 2022 to a maximum of Sh12,960.

This allowed the fund to collect over Sh100 billion annually from Sh26 billion in 2022, providing it with a war chest for cutting deals.

The NSSF is part of a consortium with a Chinese contractor that is building the Nairobi- Nakuru – Mau Summit expressway at an estimated cost of Sh111.3 billion. It is also scouting for private equity offshore deals in the US and Europe.

The heavy share of proxy accounts in KPC’s top shareholder register contrasts sharply with the ownership structure that emerged after IPOs through privatisation.

Safaricom Plc listed only two nominee accounts among its top 10 shareholders in the year ending March 31, 2009, or months following the 2008 offering of the telecoms firm.

KenGen, which had an IPO in 2005, revealed four nominee accounts among its top 10 shareholders.

Foreigners, local retail investors and oil marketing companies (OMCs) shied away from the oversubscribed IPO.

Local retail investors bought shares worth Sh4.1 billion against their allocation of Sh21.2 billion units, while foreigners spent a measly Sh34.8 million compared to their target of Sh21.2 billion.

Oil marketers took shares worth Sh23.1 million or 0.14 percent of the Sh15.9 billion stocks allocated to the dealers who rely on the pipeline to feed the market.

The concentration of local institutional investors and Uganda implied that the IPO was seen as a long-term strategic investment.

The shares, which were sold at Sh9 each during the IPO, started trading on the Nairobi bourse on March 9 and closed at Sh9.06 at the close of trading.

A while back, few imagined Upper Hill, Kilimani, Kileleshwa and Westlands would become home to clusters of high-rise apartments.

Equally unexpected was the dramatic transformation of leafy suburbs such as Lavington and Karen, where changing planning standards, population pressure, improved infrastructure and new construction technologies have reshaped neighbourhood skylines. These shifts have also changed what buyers and tenants expect from developers.

The developers most likely to succeed are those who anticipate changing lifestyles rather than simply build houses. Understanding the needs of young professionals, entrepreneurs and a growing international clientele is now a competitive advantage.

Some preferences remain non-negotiable. Security of land tenure is the foundation of any property investment, as buyers want assurance that their homes are built on legally secure land. Reliable water and electricity are equally essential, while good access roads and proximity to major transport routes, shopping centres and other amenities continue to influence demand.

Beyond these basics, however, expectations have evolved. Exposure to global housing trends and advances in technology have raised the standard for residential developments in Nairobi. Buyers increasingly want homes that offer convenience, connectivity and enhanced security alongside affordability.

Reliable, high-speed internet has become as important as water and power, supporting smart home devices and remote working. Strong mobile network coverage is another necessity. Security has also become technology-driven, with automated gates, CCTV surveillance, intercom systems and digitally controlled access replacing the traditional guard-only approach.

The rise of hybrid and remote work means developers must also create homes that accommodate workspaces.

Quiet rooms, study nooks or functional balconies, together with sufficient power outlets, USB charging ports and good lighting, are becoming attractive selling points. Looking ahead, developers should also prepare for emerging technologies such as wireless charging stations integrated into homes.

Practical amenities continue to matter. Adequate, secure parking remains a priority, and developers should begin installing electric vehicle charging points as Kenya gradually adopts cleaner transport options. On-site laundry facilities or dependable laundry services also add value for busy urban residents.

Lifestyle amenities have become powerful pull factors. Modest gyms, swimming pools, children’s play areas and well-maintained green spaces make developments more appealing, particularly in gated communities and apartment complexes.

Ultimately, however, the long-term value of a development depends on sustainable management.

The insurance sector is facing a growing human capital crisis as experienced underwriters, actuaries and risk managers retire in large numbers. Their departure is creating a shortage of specialised talent needed to assess increasingly complex risks, including climate change, cyber threats and emerging technologies.

Nearly one in four insurance professionals globally is aged 55 or older, while the pipeline of younger workers entering the industry remains weak. Because these skills take years to develop, the loss of experienced professionals threatens the industry’s ability to innovate, protect businesses and households, and support economic stability.

A major challenge is perception. Many young professionals see insurance as an outdated, bureaucratic industry with limited career appeal, making it difficult to compete with technology and finance for top talent. At the same time, there is little understanding of insurance’s broader role in society.

The industry underpins disaster recovery, infrastructure development, renewable energy projects and business resilience, yet this purpose is rarely communicated effectively.

The problem is worsened by limited exposure in higher education. Insurance is largely absent from university curricula, meaning many students complete their studies without ever considering it as a career option.

To attract fresh talent, the industry must reposition itself as a technology and innovation-driven sector. Rather than focusing solely on claims and premiums, insurers should showcase careers in artificial intelligence, data science, climate risk modelling and cybersecurity.

This would better align the industry with the interests of today’s graduates.

Closer partnerships between insurers, universities and professional bodies are equally important. Modern curricula should combine insurance with disciplines such as data analytics, environmental science and cybersecurity, while risk management modules should be introduced in business and technology programmes.

Finally, insurers need stronger talent pipelines through paid internships, mentorship programmes, university competitions and scholarships for insurance-related degrees.

Investing early in young professionals will help secure the specialised skills the industry needs for the future.

It is a Tuesday, and you are deep in your work. Then someone taps you on the back and tells you to hide under your desk. They are planning a birthday surprise for a colleague.

Later, someone pulls out a phone and starts filming. In another office, the corporate affairs team films a dancing challenge for the company’s social media pages. Later that month, the same office is planning a retreat.

The intention is usually the same: bring people closer, improve morale and build a stronger team.

But what happens when the people being asked to have fun would rather not dance, perform, hug a colleague or appear on the company’s social media page?

Team building can strengthen relationships at work. So where does real team building end and forced fun begin?

Grace Nzula, a HR consultant, says she has watched many companies try to bring their staff closer through games, birthday parties, dance challenges and retreats. But she has also seen how quickly these activities can go wrong, exposing differences in personality, age, religion, physical ability and personal boundaries.

She says some companies make the mistake of organising a team-building when there is conflict at work, hoping it will solve the problems.

‘You cannot out-exercise a bad diet,’ she says. ‘If you don’t have a proper work culture, if you’re not properly supporting employees, it doesn’t matter the number of team-building activities you do.’

According to the HR expert with Atarah Solutions, a firm based in Nairobi, some problems need a change in company systems, not a game of tug-of-war in Naivasha.

She says ‘forced fun’ usually shows up when the workplace culture is already broken. ‘When your culture is toxic, and people don’t get along, you first need to address the real issue,’ she says.

She has seen offices that do not even allow staff to take proper lunch breaks, yet still expect one retreat a year to fix everything.

She shares an example of an employer who would buy the same type of cake for every staff member’s birthday. One day, someone finally asked the employees if they liked the cake. ‘Those cakes are lame,’ one worker said. ‘First of all, I’m gluten intolerant. You buying me a cake means I can’t eat it.’

Another worker said being forced to celebrate with colleagues who only clap for them in public but talk badly about them behind their backs felt worse than not celebrating at all.

Another concern is time wastage. Yes, the social media team or corporate affairs are doing their job, but aren’t they disturbing others?

‘Employees can’t meet a deadline because you guys were recording a TikTok video,’ she says. ‘Everything must be done in moderation.’

Ms Nzula adds that employee engagement should be a continuous activity to motivate staff, not a once-a-year event. HR should also ensure there is a balance; otherwise, it can quietly turn into an entitlement.

She remembers companies that used to hold pizza Fridays until money became tight. ‘Employees almost went on a strike,’ she says.

She explains how a good HR department fixes such concerns. The best organisations let employees suggest their own activities. Some offices go bowling on the last Friday of the month. Others prefer a hike at Karura Forest, a quiz night, a talent show, or simply pizza and music in the boardroom.

When it comes to physical games like carrying colleagues, sack races or running around during retreats, she says the planner must know their audience well. She recalls a retreat where two directors could not join certain games because they had recently had knee surgery.

Right to opt out

Workers should also be allowed to opt out of anything that feels wrong for them. ‘You have somebody who is religious, and you want them to twerk,’ she says, giving an example of how mismatched an activity can be with a person’s beliefs.

Recording employees for company videos should never happen without their consent. ‘If I do not want to appear on social media, I should not be forced,’ she says, adding that this also touches on data protection rules.

Isaac Maweu, a counselling psychologist, workplace wellbeing coach and corporate trainer, explains what happens when an employee is pushed into an activity that embarrasses them.

‘Embarrassment leads to a loss of esteem; one feels not respected,’ he says, adding that instead of the activity bringing people together, it can push them further apart, and the resentment can follow the person long after the event is over. ‘This person feels like they should not be there anymore,’ he says.

He gives an example of physical contact between colleagues of different genders during team-building games. If someone is not comfortable hugging a colleague, he says, they should never be forced. People enjoy different things because of their personalities, beliefs and backgrounds. He uses religion as an example.

‘You can’t expect a Muslim employee to dance to haram music or a Christian to sit through a meditation session. Somethings upset the personality, behaviour, culture of a person,’ he says.

Multigenerational dynamics

On the trend of companies filming employees dancing or carrying each other for social media content, Mr Maweu says companies should not be uncomfortable engaging in such activities lightly. He says workplace wellness depends heavily on how safe people feel during team building.

‘The younger employees may find it fun, but older workers may have concerns about the physical closeness,’ he says.

In offices with multigenerational workers, he suggests simpler alternatives like sack races or egg carrying games that do not require close physical contact.

‘It doesn’t have to be activities around physical and close connection that upset someone’s standard.’

There is a healthy way to push employees slightly outside their comfort zones, but it must come with caution. He gives an example of asking someone who fears public speaking to try a short challenge, followed by a proper debrief afterwards.

‘How was the session? What did you like? What didn’t you like?’ he says. He explains that these are the kind of questions that help a company learn and improve the next activity, instead of repeating the same mistake.

Kenya is unable to meet its fiscal consolidation targets because of cash demands by education and security sectors, which were allocated Sh1.35 trillion in this year’s budget, President William Ruto’s chief economic advisor, David Ndii, has said.

He said despite allocating the education sector Sh784.5 billion in the current budget, the government is still running a deficit in funding for universities and teacher recruitment.

Tying the funding demands to demographics, Dr Ndii cited the widening ratio of security officers and teachers to the population as one of the reasons the government is being forced to spend more on the two despite calls to cut its recurrent budget.

‘Fiscal consolidation is harder than it might look from the outside, where it is easy to ask why we can’t just reduce expenditure. The single largest driver of the expenditure side of government is demographics,’ Dr Ndii said when he spoke at a markets forum organised by Mwango Capital last week.

‘We had a teachers’ deficit of 200,000 when the current administration took over, and though we have employed 120,000, we still have a shortfall of 80,000. If you look at ratios of things like security services per population, that number has been dropping, so you have more people to serve, and you need more money,’ the chair of the presidential council of economic advisers added.

The government has budgeted Sh223.7 billion for 1.2 million tertiary students this year, but with their number set to double to 2.5 million over the next five years, the State estimates that the funding requirement will climb to Sh450 billion.

To cap the impact of the tertiary education budget on its books, the government is rolling out a new funding model in which it will issue education bonds backed by an annual exchequer allocation of Sh100 billion.

In the current budget, the security sector has been allocated Sh567.4 billion. Defence has the largest share at Sh252.1 billion, followed by the National Police Service at Sh144.7 billion, the National Intelligence Service (NIS) at Sh64.1 billion, internal security and administration at Sh63.9 billion and the Kenya Prisons Service at Sh42.6 billion.

Together, education and security account for 28 percent of Kenya’s Sh4.82 trillion budget expenditure. The budget deficit for the year runs at Sh1.145 trillion, equivalent to 5.5 percent of GDP.

The government has unsuccessfully targeted to lower this deficit to three percent of GDP, because of expenditure overruns and revenue shortfalls.

Lowering the deficit to about three percent in the medium term is one of the conditions that the International Monetary Fund (IMF) had placed on Kenya under the $3.6 billion funding programme that ended in April 2025. The two parties are in talks for a successor programme.

In the 2025/2026 fiscal year, the Treasury opened with a projected budget deficit of Sh923.2 billion, equivalent to 4.8 percent of GDP.

Spending and revenue revisions through the year, however, meant that the actual deficit rose to Sh1.26 trillion by the end of June 2026, equivalent to 6.8 percent of GDP.

On the revenue side, Dr Ndii said the reforms meant to close the deficit gap have trailed growth in spending.

Kenya currently runs a revenue yield gap of eight percent of GDP-meaning that the country’s tax to-GDP-ratio of about 14 percent is below the ideal level of 22 percent.

Tax revenue fell short of target in the 2025/26 fiscal year by Sh52 billion, closing the year at Sh2.59 trillion against a target of Sh2.64 trillion.

‘On the revenue side, it has been challenging to implement structural reforms, although they are beginning to kick in now. Revenue reforms are lagging expenditure demands, which means fiscal consolidation ambitions meet reality,’ added Dr Ndii.

To close the revenue gap, the State has leaned on digital technology to catch tax cheats, with Mr Ndii adding that the government is hoping to increase revenue to GDP by at least a percentage point per year, to halve the revenue yield gap in the next five years.