Kenya Launches East Africa’s Largest IPO: $825 Million Pipeline Company Sale Goes Live
The Kenyan government has officially launched the sale of a 65% stake in Kenya Pipeline Company, setting up what is poised to become East Africa’s largest initial public offering in local currency terms with a target of 106.3 billion Kenyan shillings, approximately $825 million. The landmark transaction, part of President William Ruto’s ambitious plan to reduce state ownership in public enterprises, has priced shares at 9 shillings each. The subscription period runs until February 19, with trading scheduled to begin on March 9 on the Nairobi Securities Exchange. The government will retain a 35% stake following the sale.
The allocation structure reserves 15% of shares for oil marketing companies and 5% for employees, with remaining shares split evenly among local retail investors, local institutions, East African investors, and foreign investors. This carefully structured approach aims to ensure broad-based participation while maintaining strategic stakeholder involvement. Kenya Pipeline operates critical fuel pipelines, storage, and distribution infrastructure linking the port of Mombasa to Nairobi and inland markets, positioning it as central to regional energy supply. The company’s strategic infrastructure profile is expected to appeal to pension funds, insurers, and energy-focused investors seeking stable cash flows tied to consistent fuel demand across East Africa.
In shilling terms, the offering is set to eclipse the historic 2008 Safaricom IPO, reflecting both the scale of the asset and the government’s urgent funding requirements. Faida Investment Bank is serving as lead transaction adviser for the deal, which represents a critical test of Kenya’s push to deepen capital markets and reduce the state’s role in commercial operations. The success of this IPO will be closely watched across the region as a barometer of investor appetite for African infrastructure assets and the viability of similar privatization initiatives in other East African nations.
Source: allafrica.com
