Kenya Pipeline IPO raises Ksh.112.3 billion after 105.7% oversubscription

In a statement released on Wednesday, the government said investors applied for 12.49 billion shares, exceeding the 11.81 billion shares that had been offered at a price of Ksh.9 per share.

Treasury Cabinet Secretary John Mbadi said the strong uptake reflects growing investor confidence in Kenya’s economic reforms and capital markets.

“The successful IPO further sustains our economic reforms and enables us to sustain the economic achievements realized thus far both from a macro and fiscal perspective such as inflation, interest rates, currency stabilization, economic growth as we turn to innovative financing mechanisms to fund infrastructure and public service projects,” said the CS.

The offer attracted a wide mix of investors, with Kenyan retail and institutional investors allocated 7.95 billion shares, representing 67.32 per cent of the total shares on offer. Local institutional investors alone will hold 40.99 per cent of the company.

Investors from across the East African Community (EAC) were allocated 3.86 billion shares, representing 32.65 per cent of the offer shares.

Following the privatization, the government of Kenya will retain a 35 per cent stake in the company, while EAC investors will hold 21.22 per cent ownership.

According to the Treasury, the KPC share sale marks the first public offering of a state-owned enterprise by the government since 2008, and the first undertaken under the Privatization Act 2025.

The process involved Cabinet and Parliamentary oversight, public participation, and compliance with capital markets regulations.

“KPC’s transition is not just that of being a listed corporate but will now be properly positioned as a regional Company allowing it to play a significant geopolitical role in East Africa's petroleum sector, primarily through its pipeline infrastructure and strategic location.” said CS Mbadi.

The IPO also introduced a technological milestone, becoming Kenya’s first electronic IPO (e-IPO), where all applications were submitted online.

The offering attracted more than 70,000 Kenyan investors, helping expand public participation in state-owned assets.

Kenya Pipeline Company plays a key role in transporting and storing petroleum products across Kenya and the wider East African region, including through partnerships with Uganda, one of its largest customers.

Following the announcement of the results, authorities will proceed with share allocation and regulatory approvals ahead of the company’s expected listing on the Nairobi Securities Exchange (NSE) on March 9, 2026.