The government has formally announced the Kenya Pipeline Company (KPC) initial public offering (IPO), setting the stage for one of the largest listings in the history of Kenya’s capital markets.
Details contained in the KPC information memorandum show that the state is offering 11.81 billion shares, representing a 65.0 per cent divestiture in the strategic energy firm.
“Information Memorandum in respect of an offer for sale by the Government of Kenya of 11,812,644,350 shares at an Offer Price of Kenya Shillings 9.00 with a par value of Kenya Shillings 0.02 each in the ordinary share capital of Kenya Pipeline Company (the ‘Offer Shares’) comprising a public offer of 65% of the issued ordinary Kenya Pipeline shares (the ‘Offer’),” the document states in part.
The government has set the offer price at KES 9.00 per share, targeting a capital raise of approximately KES 106.31 billion. Based on this pricing, the transaction values KPC at about KES 163.56 billion, placing the IPO among the most ambitious public offerings ever undertaken at the Nairobi Securities Exchange (NSE).
Offer Timeline and Share Allocation
The IPO opened on January 19 and will run until February 19, giving investors a one-month window to submit applications. The extended subscription period reflects the size of the transaction and the significant capital the government seeks to raise.
Under the allocation structure, retail investors, institutional investors and regional or East African Community (EAC) investors will each receive 20.0 per cent of the shares on offer. Oil marketing companies (OMCs) have been allocated 15.0 per cent of the total shares.
The offer will close on February 19, 2026, after which no new applications will be accepted. Authorities have scheduled the announcement of allocation results for March 4, 2026.
Successful applicants will be required to complete payment on guarantees, both local and international, by March 5, 2026. The Central Depository System (CDS) will electronically credit shares to investors’ CDS accounts on March 6, 2026. On the same day, refunds for unsuccessful or partially successful applications will be processed.
Trading of KPC shares on the Nairobi Securities Exchange is expected to begin on March 9, 2026, subject to regulatory approvals.
The Capital Markets Authority (CMA) noted that the timeline may change if necessary, with any adjustments to be communicated publicly.
“The dates indicated above may be subject to change with the prior approval of the CMA. Any such amendments will be published in the press,” the memorandum states.
