Kenya Launches $825 Million IPO for State Oil Pipeline Firm, Seeks to Deepen Capital Markets

The IPO comes as part of President William Ruto’s broader privatisation drive to reduce the government’s direct involvement in commercial enterprises, raise funds for infrastructure and sovereign wealth initiatives, and broaden public participation in wealth creation.

In early January, President Ruto personally urged Kenyans to invest, even with small amounts, to ensure that ordinary citizens benefit from what he described as a “strategic national asset.” Financial analysts note the significance of the offering for both Kenya’s capital markets and regional investors. Some Ugandan officials have signalled interest in acquiring a stake using part of a proposed $2 billion loan backed by global energy trader Vitol, underlining KPC’s importance to East Africa’s integrated oil transport network.

However, the IPO has not been without scrutiny. Some observers have raised transparency and valuation concerns, with legal challenges filed over the process, including claims it may not have adequately involved public participation as required by law. Critics warn that any perception of opacity could affect investor confidence and subscription rates.

The IPO is scheduled to close on 19 February, after which allocation results and payment confirmations will be processed ahead of the 9 March listing on the NSE. Provided all procedural and regulatory milestones are met, the share sale could inject fresh activity and confidence into Kenya’s capital markets at a time when the government is looking to expand stock market participation and create long-term investment opportunities for citizens.