NAIROBI, Kenya — The government is preparing to list Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange (NSE), opening the state-owned energy company to both local and international investors, Treasury Cabinet Secretary John Mbadi has announced.
CS Mbadi described KPC as a debt-free, highly profitable, and strategically important company with assets spread across the East African region.
The company made a profit of Sh8.48 billion last year and is valued at Sh163 billion, making it a significant asset for Kenya’s capital markets.
“This is a fantastic, profitable major asset that we are offering to the market with all the advantages that you can think about,” CS Mbadi said.
Strategic Approach to Privatization
Mbadi explained that the government’s decision to list KPC aligns with its broader policy of privatization and professional management.
“The government is not in the business of doing business. We only step in where there are distortions in the market that need correction,” he said.
He added that KPC had been “kept in the vault” for too long, and opening it to the NSE would allow the company to compete with other major corporations like Safaricom, while providing opportunities for Kenyans and regional investors to participate in wealth creation.
CS John Mbadi on the Kenya Pipeline IPO: In terms of the people who are expressing interest, the indication is that we are doing very well, especially among certain categories of investors. 5% will go to the staff of Kenya Pipeline; we feel it is necessary for them to have a
Inclusive Shareholding Plan
The planned IPO will be structured to include multiple categories of investors:
- 5% reserved for KPC staff
- 15% for oil marketers, both local and international
- 20% for individual Kenyans
- 20% for institutional local investors
- 20% for East African regional investors
- 20% for international investors
CS Mbadi said this allocation is designed to ensure broad participation and allow Kenyans to share in the wealth generated by a critical national asset.
Alternative Financing and National Growth
Mbadi emphasized that privatization and capital market participation are part of Kenya’s strategy to reduce borrowing and mobilize alternative financing.
“The only way to reduce borrowing is to have alternative financing because we cannot stop living. Debt has accumulated because we don’t have enough resources to implement capital projects,” he said.
National Infrastructure Fund and Sovereign Wealth Fund
In addition to the KPC IPO, CS Mbadi highlighted the government’s broader plans to create investment vehicles to support national development and future generations.
The National Infrastructure Fund, registered as a limited liability company, will invest in public, bankable projects, while the Sovereign Wealth Fund Bill, currently under review by the Attorney General, aims to safeguard wealth for future generations.
Mbadi said these measures reflect a strategic shift in Kenya’s approach to managing state-owned assets, promoting efficiency, professionalism, and public participation in national wealth creation.
