Kenya Pipeline Opens IPO to Ugandan Investors

Ugandans, particularly oil marketing companies, have an opportunity to acquire shares in one of East Africa’s largest and most profitable energy infrastructure firms, Kenya Pipeline Company (KPC), currently wholly owned by the Government of Kenya.

Last week, KPC and the Ministry of Finance accounted for the company’s Initial Public Offer (IPO), with total assets valued between KES 123 billion and KES 163 billion (approximately USD 951.5 million to USD 1.26 billion).

The offer will see the government divest 65 per cent of its stake, with 20 per cent reserved for investors from East Africa outside Kenya, a category created to ensure that citizens of countries relying on KPC infrastructure can participate in ownership. It is Kenya’s first IPO since Safaricom went public in 2008.

The Cabinet Secretary for the National Treasury, John Mbadi, told petroleum industry stakeholders in Uganda that the government intends to extend the offer to other regional markets after Uganda.

Mbadi said the IPO is expected to raise about KES 106.3 billion (roughly 2.9 trillion Shillings), assuming full subscription of the 11.8 billion shares on offer. The proceeds will support the government’s approved financing plan for the 2025/26 financial year, although he expressed confidence that the offer will be heavily oversubscribed.

According to Lead Transaction Advisor Belgrad Kenne, each share has been priced at KES 9.00 (about 248 Shillings at current exchange rates), with a minimum purchase of 100 shares. This places the entry-level investment at roughly KES 900, or 24,800 Shillings.

Beyond the regional allocation, 20 per cent of the shares have been set aside for ordinary Kenyans, 20 per cent for foreign investors, and another 20 per cent for institutional investors. Oil marketing companies in the region will receive 15 per cent, while 5 per cent is reserved for KPC staff.