LONDON, UK – Kenya is gearing up for one of its most ambitious privatisation efforts yet, with plans to list the Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange (NSE) through an Initial Public Offering (IPO) in 2025 — a move President William Ruto says will unlock new investment opportunities and strengthen capital markets across the continent.
Speaking at the London Stock Exchange during the Africa Debate Forum, Ruto said the listing of KPC is part of a broader government strategy to privatise key state-owned enterprises and attract both domestic and international investors.
“We plan to list the Kenya Pipeline Company through an IPO in 2025, offering investors a unique opportunity to deploy capital in one of Kenya’s most strategic infrastructure enterprises,” said the President.
The President emphasised that privatisation is not just about divesting state assets but revitalising Kenya’s financial markets, especially the NSE, and sending strong signals of economic confidence.
“We have made a strategic decision to broaden Kenya’s stock market appeal by earmarking key State assets for privatisation through IPOs,” Ruto noted. “This is a deliberate move to expand market participation, deepen liquidity, and elevate our capital markets to world-class standards.”
Capital Markets as a Development Engine
Ruto also used the international platform to highlight the role capital markets play in Africa’s economic transformation, describing them as “catalysts for sustainable economic growth.”
“They serve as efficient mechanisms for mobilising domestic savings, attracting international capital, and channelling resources into long-term investments in infrastructure, innovation, and industrial transformation,” he said.
He praised the United Kingdom for its continued partnership with Kenya and Africa at large, supporting financial inclusion, institutional reforms, and capital markets development.
He cited UK-backed initiatives such as Mobilist and FSD Africa for their role in unlocking capital for impact-driven investments.
KPC’s Strong Financial Standing
The upcoming KPC listing is already gaining momentum, supported by strong financial performance.
Earlier this year, National Treasury Cabinet Secretary John Mbadi confirmed the government’s intent to take KPC public after receiving a Sh3 billion interim dividend from the company — part of a total Sh10.5 billion remitted to the exchequer over the past year.
“We believe KPC stands to benefit significantly from a listing. It will gain access to liquidity and capital essential for its regional expansion and diversification into areas like LPG,” said Mbadi.
He added that an IPO would allow ordinary Kenyans to own a stake in one of the country’s most strategic state corporations, promoting inclusive economic growth.
NSE Riding a Wave of Reforms
President Ruto also applauded reforms at the Nairobi Securities Exchange, saying they have begun to yield results.
“Strategic reforms and a market-focused strategy under the new NSE leadership have enabled the exchange to emerge as Africa’s top performer in dollar returns in 2024,” he said, referencing recent data from Morgan Stanley Capital International (MSCI).
This, he said, was a strong indicator that Kenya’s renewed focus on capital market development is paying off.
