Kenya has opened what could become East Africa’s biggest initial public offering in local-currency terms, offering a 65% stake in the state-owned Kenya Pipeline Company (KPC). The government aims to raise 106.3 billion Kenyan shillings ($825 million), in a deal that will test Nairobi’s ability to tap domestic capital markets to fund national priorities.
Divestment strategy and listing timeline
The IPO supports President William Ruto’s push to reduce the state’s footprint in commercial enterprises while unlocking new sources of financing. Kenya faces high public debt, limited room to raise taxes, and annual repayments that consume about 40% of government revenues. Against this backdrop, the administration has turned to privatisation and public listings to mobilise capital without increasing reliance on external borrowing.
The government set the offer price at 9 Kenyan shillings per share. Subscriptions will remain open until February 19, with trading expected to begin on March 9 on the Nairobi Securities Exchange. Authorities expect strong participation from retail investors, alongside interest from institutional players in the energy sector who view KPC as central to Kenya’s fuel supply chain.
Share allocation and government stake
The IPO structure aims to balance public participation with industry and employee inclusion. Oil marketing companies will receive 15% of the offering, while employees will receive 5%. The remaining shares will be distributed evenly among local retail investors, local institutions, East African investors, and foreign investors. Even after the sale, the government will retain a 35% stake in KPC to protect national interests.
Faida Investment Bank is serving as the lead transaction adviser for the listing.
Record potential and company role
If completed as planned, the KPC transaction will surpass the landmark 2008 Safaricom IPO, which raised just over 50 billion shillings and remains Kenya’s largest public offer in local-currency terms. In U.S. dollar terms, however, Safaricom still holds the record, reflecting the depreciation of the Kenyan shilling in recent years.
KPC operates the country’s key petroleum transportation and storage infrastructure, linking the port of Mombasa to major consumption centres across Kenya and into the wider region. The pipeline network supplies Nairobi and western Kenya, while also supporting fuel flows to neighbouring markets. This gives KPC a central role in national energy security and regional supply stability.
Use of proceeds and broader market context
The IPO sits within a wider programme of partial divestment from public enterprises. The government plans to use proceeds to finance new infrastructure, support the establishment of sovereign wealth funds, and ease pressure on public finances. Ruto has also framed the listing as a way to broaden ownership in profitable state assets and allow citizens to benefit directly from their performance.
The listing also carries a regional dimension. By opening participation to East African investors and international buyers, Kenya aims to deepen cooperation around strategic energy infrastructure that supports trade and economic activity across borders.
Even with a lower target than earlier ambitions, the deal remains historic. In September 2025, Nairobi said it could raise up to $1.15 billion through the IPO, which would have marked the country’s first major listing in more than a decade. Even at the revised level, the KPC offer sets a new benchmark for public fundraising in East Africa.
The IPO follows the government’s December 2025 reduction of its stake in Safaricom, which raised more than $2 billion. Together, the transactions signal a shift toward market-based funding tools as Kenya looks to reduce fiscal strain and diversify its financing options.
Global equity markets may also support the timing. LSEG data shows global equity capital market activity reached $738.4 billion in 2025, up 15% year-on-year and the strongest level in four years. With investor appetite improving, Kenya is betting the market can absorb a transaction of unprecedented scale in the region.
Ultimately, the KPC listing will test the credibility of Kenya’s privatisation strategy and the depth of its capital markets. It will also indicate whether equity fundraising can play a bigger role in financing the economy as the government balances fiscal pressure with long-term development goals.
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