Kenya is preparing to launch the long-awaited Kenya Pipeline Company (KPC) IPO, a landmark KES 100 billion capital raise that is expected to reshape the Nairobi Securities Exchange (NSE), unlock a new era of retail participation, and position KPC as one of the most valuable infrastructure companies in Africa.

• •The offer period is expected to open this week, marking the first large-scale Electronic IPO (E-IPO) in Kenya’s history.
• •The offer officially opens on 19 January 2026 and closes on 19 February 2026, with trading expected to commence on 9 March 2026 on the Main Investment Market Segment (MIMS) of the Nairobi Securities Exchange.
• •Based on the final offer structure, the company will list at an implied valuation of approximately KES 163.6 billion, following the sale of 11.81 billion shares at KES 9.00 per share.

The transaction is being positioned as a once-in-a-generation listing, designed to revive retail participation, deepen market liquidity, and bring millions of ordinary Kenyans into ownership of one of the country’s most strategic infrastructure assets.

A Historic Listing for Kenya’s Capital Markets

If successful, the KPC IPO will be:

• •The largest IPO on the NSE since Safaricom’s 2008 listing
• •The first fully digitised E-IPO
• •One of the largest infrastructure privatisations in Africa in recent years

The government is divesting 65% of its stake (11.81 billion shares) at an offer price of KES 9.00 per share, while retaining 35% ownership, which will be subject to a 24-month lock-in period to ensure continued strategic oversight of the national energy artery.

The IPO has received approval from both the Capital Markets Authority (CMA) and the Nairobi Securities Exchange (NSE), and will list under the ticker code KPC.0000.

Valuation, Capital Raise and Financial Strength

Under the current structure:

• •Target Valuation: KES 154 billion
• •Implied Listing Valuation: KES 163.6 billion
• •Capital Raise Target: KES 106.3 billion
• •Post-Listing Ranking: 5th largest stock on the NSE
• •Balance Sheet: Debt-free

Post-listing, the company is expected to access broader and cheaper capital through instruments such as corporate bonds to fund regional expansion and system upgrades.

The offer price has been set using an earnings-based valuation methodology anchored on an EV/EBITDA multiple of 8.1x, aligned with regional and global infrastructure peers.

Strong 2024/25 Financial Performance Underscores IPO Timing

The IPO comes against the backdrop of a strong financial year, underscoring KPC’s position as a highly profitable and resilient infrastructure business.

For the 2024/25 financial year, KPC posted the following highlights:

• •Total Revenue: KES 38.59 billion
• •Profit After Tax: KES 7.49 billion
• •EBITDA: KES 18.59 billion
• •Earnings Per Share (post-share split): KES 0.4122
• •Dividend Per Share (post-share split): KES 0.347

The company paid total dividends of KES 5.9 billion for FY2025 and has committed to a 50% dividend payout policy post-listing, positioning KPC as a long-term income stock for retail and institutional investors.

Operational Throughput: 10 billion litres of petroleum products transported during the period ending June 2025

Balance Sheet: Maintained a debt-free status

Share Allocation (65% Divestiture)

The offer consists of 11,812,644,350 shares, representing 65% of issued share capital, allocated across five investor pools:

• •20% – Kenyan Retail Investors
• •20% – Kenyan Institutional Investors
• •20% – Foreign Investors
• •20% – East African Community (EAC) Investors
• •15% – Oil Marketing Companies (OMCs)
• •5% – KPC Employees (ESOP)

A Regional Energy Monopoly

KPC operates as a natural monopoly and remains one of East Africa’s most strategically important energy infrastructure companies.

Regional Market Share

• •Uganda: 99%
• •South Sudan: 75%
• •Eastern DRC: 75%
• •Total footprint: 6 countries

Operational Scale

• •Projected annual throughput: 10 billion litres
• •Pipeline network: Over 1,342 kilometres
• •Storage capacity: 1.14 million cubic metres
• •Asset Base: 100% ownership of Kenya Petroleum Refineries Ltd (KPRL)

Full ownership of KPRL is expected to unlock further value as the refinery is repositioned within the regional petroleum logistics and storage ecosystem.

Governance and Competition Safeguards

Given KPC’s dominant position, the IPO framework embeds strict governance and regulatory controls.

• •Board Structure
• •Government retains significant representation reflecting its 35% strategic stake.
• •Anti-Monopoly Restrictions
• •KPC will not engage in petroleum importation or retail sales without prior approval from:

Competition Authority of Kenya (CAK), Energy and Petroleum Regulatory Authority (EPRA) and the National Assembly. These safeguards preserve KPC’s role as a neutral, regulated infrastructure operator.

Transaction Team and Execution

The IPO is being led by Faida Investment Bank as Lead Transaction Advisor, supported by a consortium comprising:

• •Dyer & Blair (Lead Sponsoring Broker)
• •Francis Drummond (Co-Sponsoring Broker)
• •PwC (Reporting Accountant)
• •TripleOKLaw & G&A Advocates (Legal Advisors)
• •Co-operative Bank
• •KCB Group
• •Stanbic Bank
• •Image Registrars (Share Registrar) By Kenyan Wall Street