By benadeta mwaura - Reporter
Kenya, January, 30 2026 - Kenya and Uganda held high-level consultations on January 29, 2026 over the ownership structure and regional implications of the Kenya Pipeline Company (KPC) Initial Public Offering (IPO), a move that would see one of Africa’s most strategic energy infrastructure firms listed on the Nairobi Securities Exchange (NSE) and broaden the footprint of East African investors.
The talks underscore Nairobi’s efforts to secure regional buy-in and operational certainty as the IPO remains open for subscription ahead of the planned NSE trading debut.
Cabinet Secretary for the National Treasury and Economic Planning John Mbadi led the Kenyan delegation in Entebbe, Uganda, where officials met Uganda’s Minister of Energy and Mineral Development Ruth Nankabirwa Ssentamu, Minister of Finance Matia Kasaija, and Permanent Secretary for Energy Irene P. Bateebe to align on how Uganda’s interests in shared pipeline infrastructure should be reflected in the IPO structure.
Speaking during the session, CS Mbadi emphasised that the consultations “build on earlier shared understanding between the two governments regarding the KPC IPO, which has already been launched and is currently open for subscription, ahead of its eventual listing in the Nairobi Securities Exchange.”
Uganda relies heavily on KPC infrastructure for its fuel imports and regional energy logistics, with more than 95 per cent of its petroleum supply transiting the pipeline network from the port of Mombasa.
This makes Uganda a substantial revenue contributor and strategic partner in the operation of East Africa’s primary petroleum transport backbone. Uganda’s representatives confirmed support for Kenya’s reform and divestment agenda, while seeking assurances on uninterrupted access, favourable shareholding arrangements and credit for its historic contribution to pipeline throughput.
Ugandan ministers also called for deeper economic cooperation beyond equity participation, saying the arrangement could translate into infrastructure efficiency gains and improvements in citizens’ livelihoods.
The KPC IPO, one of the largest in East Africa in years, is structured under the government’s broader privatisation and capital markets development agenda, with the Republic of Kenya divesting 65 per cent of its stake while retaining a 35 per cent strategic interest.
The offer opened on January 19, 2026, and is scheduled to close on February 19, 2026, ahead of an expected NSE trading start on March 9, 2026.
Under the IPO terms, 11.8 billion shares are being offered at KSh 9 per share, priced to raise an estimated about KSh 106.3 billion roughly US$825 million for the Kenyan Treasury, part of President William Ruto’s push to deepen capital markets and finance critical infrastructure without adding to sovereign debt.
This listing is expected to revive a long-quiet IPO market in Kenya, with earlier data showing a surge in 49,363 new share accounts at the NSE connected to the KPC offer as retail and small-ticket investors participate in the sale.
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KPC has delivered solid financial performance in recent years, with consistent revenue growth and profitability that has attracted investor interest.
Latest figures show a turnaround from losses to a net profit of about KSh 7.49 billion in FY 2025 and robust EBITDA, underpinning the government’s confidence in the IPO’s appeal to domestic and regional investors.
However, independent analyses show valuation disagreements: one Kenyan investment bank placed a fair value estimate at around KSh 6.35 per share, notably below the KSh 9 offer price, a divergence that raises questions about pricing and long-term investor returns and highlights the need for careful evaluation by subscribing investors.
The KPC network serves as a critical energy supply corridor for East and Central Africa, transporting refined petroleum via pipelines and storage terminals that are essential for landlocked economies like Uganda’s.
The IPO and associated consultations give both governments a platform to formalise a shared stakeholding understanding that protects regional energy security while creating ownership opportunities for regional investors.
KPC also recently signed a service level agreement with Kenya Ports Authority (KPA) for operations at the new Kipevu Oil Terminal 2, enhancing regional storage capacity and easing bottlenecks, further positioning the company as a linchpin for both domestic and cross-border petroleum logistics.
Not all stakeholders support the privatisation drive without scrutiny. Constitutional petitions have been filed challenging the IPO process on grounds of procedural compliance and national interest protections, prompting legal debate and public interest litigation that could influence how and when the listing progresses.
Kenyan lawmakers and public opinion leaders have also raised flags about allocation fairness and market valuation, with some alleging that certain individuals might exploit regional share categories for preferential access, tensions that authorities will need to address transparently to maintain confidence in the offering.
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