Kenya on Monday launched the sale of a 65% stake in state-owned Kenya Pipeline Company (KPC), opening the way for a major initial public offering expected to raise about $825 million.
Authorities said the subscription period began at the opening of the market, with shares priced at 9 shillings, or roughly $0.07 each.
As seen on Ecofin Agency, the offer will remain open until Thursday, February 19, and the company’s shares are expected to list on the Nairobi Securities Exchange on March 9.
Kenya Pipeline Company operates across Kenya and several other East African countries and plays a critical role in the region’s energy infrastructure.
The IPO forms part of a wider government programme to partially divest from public enterprises in order to raise domestic capital.
Officials say the funds will be used to finance new infrastructure projects, support the creation of sovereign wealth funds, and reduce reliance on foreign borrowing.
Speaking earlier in 2026, President William Ruto said the offer would be open to both local and foreign investors, with a strong emphasis on encouraging public participation.
He described the IPO as an opportunity for citizens to benefit directly from the performance of a profitable state-owned company.
The government plans to retain a substantial stake in KPC to safeguard national interests, while also allowing regional investors, particularly from other East African countries, to participate.
This aligns with Kenya’s goal of strengthening regional cooperation around strategic energy infrastructure.
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The sale of part of KPC follows the government’s reduction of its stake in telecommunications firm Safaricom in December 2025, a move that raised more than $2 billion. Although the final target for the KPC IPO is lower than originally planned, the transaction remains historic.
In September 2025, Kenya had said it aimed to raise up to $1.15 billion through the listing, which was expected to be the country’s first major IPO in more than a decade. Even at the revised level, the offering is set to break records.
The KPC IPO will surpass Safaricom’s 2008 listing, when the government raised $388 million.
Seventeen years later, Kenya is relying on a more developed financial market and a wider investor base to carry out an IPO of unprecedented scale in East Africa.
The timing also coincides with a more supportive global environment for equity markets.
According to LSEG data, global equity capital market activity reached $738.4 billion in 2025, representing a 15% year-on-year increase and the highest level in four years, with more than one-fifth of the funds raised by issuers in Europe, the Middle East, and Africa.
The offering will test the domestic market’s capacity to absorb large fundraising exercises and the credibility of the government’s privatisation strategy.
It is also expected to play a key role in shaping how capital markets are used as a central pillar for financing Kenya’s economy under the current policy framework.
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Image Credit: Semafor
