Kenya Launches Historic $824 Million Pipeline Operator Sale in East Africa’s Largest Local Currency IPO
Kenya has launched the sale of a 65 percent stake in its state-owned oil pipeline operator, seeking to raise 106.3 billion shillings in what could become East Africa’s largest initial public offering measured in local currency terms. The listing of Kenya Pipeline Company Limited, which opened on Monday, is expected to surpass the landmark 2008 Safaricom share sale that raised just over 50 billion shillings, making it the biggest offering ever conducted in Kenya by shilling value.
Valued at 163.6 billion shillings, Kenya Pipeline Company is the country’s first fully electric public offering and the second biggest listing in the Nairobi Securities Exchange’s 70-year history, according to exchange chief executive Frank Mwiti. The move forms part of President William Ruto’s broader push to divest from state-owned enterprises and ease pressure on public finances as East Africa’s biggest economy grapples with high debt levels and rising servicing costs.
Kenya’s public finances have come under increasing strain, with debt servicing consuming about 40 percent of government revenues and limited room to raise taxes, forcing the administration to pursue alternative financing models. Finance Minister John Mbadi emphasized the necessity of the move at the launch ceremony, stating that traditional methods of financing through taxation and debt no longer have sufficient space, making innovative financing mechanisms essential for funding infrastructure and public service projects.
The offering has been priced at nine shillings per share and will remain open until February 19, 2026, with trading on the Nairobi Securities Exchange expected to begin on March 9. Of the total stake on offer, 15 percent has been reserved for oil marketing companies and five percent for employees. The remaining shares will be allocated evenly across local retail investors, local institutional investors, East African investors and foreign investors, each receiving 20 percent. The government will retain a 35 percent stake following the listing.
Market participants expect strong demand, supported by a rally in Kenyan equities that has seen the MSCI Kenya stocks index rise more than 50 percent over the past year. The offering also comes amid a broader recovery in global equity capital markets, with global equity issuance reaching $738.4 billion in 2025, up 15 percent year on year. Kenyan investment bank Faida is acting as the lead transaction adviser for the deal.
Source: businessday.ng
