Treasury launches Kenya Pipeline IPO, selling 65% stake at KSh 9 a share

Get breaking business news on WhatsApp

The National Treasury on Wednesday launched the initial public offering (IPO) of Kenya Pipeline Company (KPC) at the Nairobi Securities Exchange, putting 65% of the state-owned pipeline operator up for sale to the public at KSh 9.00 a share. The offer covers 11,812,644,350 shares, worth about KSh 106.3 billion if fully taken up, according to KPC’s information memorandum dated 17 January 2026.

The Kenya News Agency described the sale as the country’s largest IPO, the first fully electronic public offer in Kenya’s capital markets, and the government’s first state-led listing in 17 years, since the Safaricom IPO of 2008.

Key details of the offer

Who can buy and how the shares are split

The memorandum splits the offer into investor pools:

• Kenyan retail investors: 20% (2.36 billion shares)
• Kenyan institutions: 20%
• KPC employees: 5% (590.6 million shares)
• Investors from the East African Community: 20%
• Oil marketing companies: 15%
• Foreign investors: 20%

If a pool is undersubscribed, unclaimed shares move to other pools in this order: local retail, local institutional, East Africa, international, then oil marketing companies.

How to apply

Because the offer is fully electronic, retail investors can apply from a phone. The memorandum lists the USSD code *483*816#, through which an applicant reads the terms and conditions, applies and pays by M-Pesa STK push. Mobile money payments are allowed only for amounts up to KSh 250,000. You need a Central Depository and Settlement Corporation (CDS) account, which you can open through a licensed stockbroker. Applications can be rejected for reasons such as failing know-your-customer checks.

Why the government is selling

The memorandum says the sale is part of the government’s divestiture policy, meant to support its fiscal strategy, develop the capital markets and reform state-owned enterprises. The proceeds go to the government, not to KPC. The Treasury will use them as part of its 2025/26 financing plan for “critical commercially viable infrastructure investment priorities, specifically Energy, Roads, Water and Irrigation, Airports”.

The government will keep 35% of KPC. The company’s articles include anti-dilution measures so that the state’s stake does not fall below that level.

What KPC earns and pays out

The offer price is based on an earnings multiple of about 8.1 times EV/EBITDA, using reported EBITDA of KSh 18.59 billion for the year to 30 June 2025. KPC paid dividends to its sole shareholder, the government, of:

After listing, KPC “commits to distributing fifty per cent (50%) of its net earnings as dividends”, subject to having enough distributable reserves, cash and regulatory approval. For KPC’s results since listing, see our report on KPC’s FY2026 profit and dividend.

Update: how the IPO ended

The offer was extended and closed on 24 February 2026. In its results notice dated 4 March 2026, KPC said investors applied for 12,486,078,724 shares worth KSh 112.37 billion, a subscription rate of 105.7%. The final allocation was:

• Kenyan institutions: 7,450,143,476 shares
• East African investors: 3,857,024,178 shares
• Kenyan individuals: 464,826,004 shares
• Oil marketing companies: 25,762,222 shares
• KPC employees: 11,020,520 shares
• Foreign investors: 3,867,950 shares

Retail Kenyans took far fewer shares than their 20% pool, and the shortfall was reallocated. Shares were credited to CDS accounts and refunds were processed on 6 March. KPC began trading on the NSE on 10 March 2026 after a bell-ringing ceremony presided over by President William Ruto, opening at KSh 9.30, Capital FM reported. Reuters reported that the shares were trading at KSh 9.40 in early trade, and that the sale raised KSh 106.3 billion for the government.

Keep track of when listed companies pay out on our NSE dividend calendar. Before you trust anyone selling shares or investment advice, check they are licensed using our guide to the CMA register.

Frequently asked questions

What was the Kenya Pipeline IPO price?

KSh 9.00 per share, with a minimum application of 100 shares (KSh 900).

How much of KPC did the government sell?

65%, or 11.81 billion shares. The government keeps 35%.

When did KPC shares start trading?

On 10 March 2026 at the Nairobi Securities Exchange, opening at KSh 9.30.

Was the KPC IPO oversubscribed?

Yes. Applications totalled KSh 112.37 billion, a subscription rate of 105.7%.