• Kenya launches sale of 65% stake in Kenya Pipeline ahead of IPO

• Offering priced at 9 shillings, aiming to raise about $825 million

• IPO supports state divestment, infrastructure funding and reduced foreign borrowing

Kenya on Monday launched the sale of a 65% stake in state-owned Kenya Pipeline Company (KPC), a move that paves the way for a major initial public offering (IPO) expected to raise about $825 million.

Authorities said the subscription period opened at the market open and the shares were priced at 9 shillings, or $0.07. The offer will run until Thursday, Feb. 19. The company’s shares are expected to list on the Nairobi Securities Exchange on March 9. KPC operates in Kenya and several East African countries, where it is a key part of the region’s energy infrastructure.

The IPO is part of a broader programme of partial state divestment from public enterprises. The aim is to raise domestic funding to finance new infrastructure, support the creation of sovereign wealth funds, and reduce the country’s reliance on foreign borrowing.

In early 2026, President William Ruto said the offer would be open to both local and foreign investors, and that the government wanted to encourage public participation. He presented the IPO at the time as a way to allow citizens to benefit directly from the performance of a profitable state-owned company.

The Kenyan state plans to retain a significant stake to protect national interests. The listing is also intended to allow regional investors, particularly from other East African countries, to take stakes in the company. This follows a stated objective of strengthening regional cooperation on energy infrastructure deemed strategic.

Record IPO despite a lower target

The sale of part of KPC comes after the state reduced its stake in telecommunications operator Safaricom in December 2025, allowing the government to raise more than $2 billion. Although the target amount is lower than initially planned, the operation remains historic. In September 2025, Nairobi said it aimed to raise up to $1.15 billion through the IPO, which was then expected to become the country’s first major listing in more than a decade. Even so, the final amount remains sufficient to set a new record.

The KPC IPO will exceed that of Safaricom in 2008, when the state raised $388 million. Seventeen years later, Kenya is betting on a more mature financial market and a broader investor base to carry out an operation of unprecedented scale in East Africa. The timing of the IPO also coincides with a more favourable global backdrop for equity markets. According to LSEG data, global equity capital market activity reached $738.4 billion in 2025, a 15% year-on-year increase and its highest level in four years. More than a fifth of these funds were raised by issuers in Europe, the Middle East and Africa.

The KPC IPO will test the domestic market’s ability to handle large-scale fundraising and the credibility of the government’s privatisation strategy. It will also largely determine the future use of capital markets as a central tool for financing the economy, in line with the government’s strategy.

Olivier de Souza