Kenya has successfully raised approximately $820 million (Ksh106.3 billion) through the initial public offering (IPO) of the Kenya Pipeline Company (KPC), marking the country’s largest privatisation in nearly two decades and the first government-led listing on the Nairobi Securities Exchange since 2008.
The IPO attracted strong interest, with investors applying for 12.49 billion shares against 11.81 billion offered, achieving a 105.7% subscription rate. The shares are set to start trading on March 9, 2026. The government will retain 35% of KPC, while local institutional investors, including the National Social Security Fund (NSSF), hold 41%. Regional investors, dominated by Uganda National Oil Company, own 21.22%, and retail investors 2.56%.
Uganda acquired a 20.15% strategic stake through UNOC, shifting from being a dependent client to a shareholder in the pipeline that transports most of its petroleum imports from Mombasa. This move gives Uganda representation in KPC’s boardroom, allowing influence over pipeline tariffs, route expansions, and investments.
The IPO proceeds will go directly into Kenya’s National Infrastructure Fund to finance roads, airports, energy, and water projects without increasing public debt. The offer faced legal challenges and debates over valuation but was completed successfully, highlighting Kenya’s commitment to capital market development and regional energy cooperation.
The strategic partnership benefits Uganda by securing long-term energy supply control while providing Kenya with fiscal relief and broadening local investor participation in national infrastructure.
This landmark transaction sets a precedent for co-ownership of regional infrastructure, aligning the interests of landlocked and transit countries in East Africa.
