Kenya Launches Historic IPO for State Oil Pipeline Operator
In a landmark move for East Africa’s largest economy, the Kenyan government has begun selling a 65% stake in the state-owned Kenya Pipeline Company (KPC). The initial public offering (IPO), which could raise approximately $825 million, is poised to become the largest in the nation’s history.
The sale is a central pillar of President William Ruto’s economic strategy to divest from state assets. The government intends to use the generated funds to finance critical infrastructure projects and establish a sovereign wealth fund aimed at securing long-term economic stability.
“Offering shares to the public is a strategic move to enhance efficiency, deepen the market, and allow Kenyans to own a stake in this vital national asset,” a government official stated.
Shares in the pipeline operator are priced at 9 Kenyan shillings (about $0.07) each. The public offer period is set to close on 19 February 2025, with trading scheduled to commence on the Nairobi Securities Exchange (NSE) on 9 March.
The KPC IPO represents a significant test for Kenya’s capital markets. If successful, it will easily surpass the country’s current record-setting IPO—the 2008 listing of telecommunications giant Safaricom, which raised roughly $388 million.
This pipeline offering is part of a broader state divestment program. The government is also concurrently reducing its stake in Safaricom, signaling a consistent shift toward increasing private sector participation in key industries.
Market analysts are watching closely, noting that strong investor demand for the KPC shares could bolster the NSE’s profile and attract further large-scale listings to the regional bourse. The pipeline company, which manages the critical storage and transportation of refined petroleum products across Kenya and the region, is considered a stable, infrastructure-based investment.
The coming weeks will determine whether this ambitious offering meets its target, cementing its place as a historic transaction in Kenya’s financial landscape.
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