Kenyans and international investors now have the chance to buy a stake in the Kenya Pipeline Company (KPC), following the launch of the company’s Initial Public Offer (IPO) on Monday.

The public sale is expected to raise Sh106.3 billion, helping the government bridge a budget gap nearing Sh1 trillion as President William Ruto’s administration moves away from borrowing commercially.

The sale also fits into a wider strategy to reduce state ownership in major enterprises, after a similar divestment involving Safaricom.

Through the IPO, the government is selling 65 per cent of KPC shares; 11.81 billion in totalat Sh9 each, while keeping 35 per cent, which will remain locked for two years to maintain strategic control.

The IPO has been cleared by the Capital Markets Authority (CMA) and the Nairobi Securities Exchange (NSE), where the company will trade under the code KPC.0000.

The offer price was calculated using an earnings-based approach, applying an EV/EBITDA multiple of 8.1x, comparable to regional and international infrastructure companies.

The public offer will run from January 19 to February 19, 2026, giving more investors an opportunity to participate. Trading on the NSE is set to start on March 9.

Interested buyers must purchase a minimum of 100 shares, costing Sh900, and have a valid Central Depository System (CDS) account, which stores shares electronically.

To open a CDS account, investors can approach any licensed stockbroker or investment bank with a national ID and KRA PIN. Once registered, applications can be submitted via the SSD option by dialling 483816# on a Kenyan mobile number or through the official KPC IPO website.

Applicants must provide their CDS account number, type of applicant, relevant documents, and proof of payment, either through an STK push or an authorised selling agent. The unique Application Serial Number will serve as the account number for payments.

Share allocation has been structured across six categories: local retail investors, local institutional investors, East African Community investors, international investors, Oil Marketing Companies (OMCs), and KPC employees.

Each of the first three groups will receive 20 per cent of the shares, while OMCs and employees will get 15 per cent and five per cent, respectively.

The IPO ends a ten-year gap in public share sales, the last being Stanlib Fahari I-REIT in 2015, which issued 625 million shares at Sh20 each.

KPC operates Kenya’s main petroleum transportation and storage network, moving fuel from Mombasa to distribution centres nationwide and across East Africa.

For the year ending June 30, 2025, the company reported revenues of Sh38.59 billion and a net profit of Sh7.49 billion. Earnings per share were Sh0.412, and dividends paid were Sh0.347 per share.

At a media briefing in Nairobi, KPC CEO Joe Sang said privatisation would improve governance and speed up investment decisions.

“It was not fully in business, as it had to balance that with national strategic duties. It will now be largely answerable to the Capital Markets Authority (CMA),” he said.

Sang added that the company now has the freedom to compete more actively in the market and focus on delivering maximum returns to shareholders.

With a current valuation of Sh163 billion, KPC is already among the top five companies listed on the NSE, and Sang has pledged to make it at least the third most traded and profitable firm on the exchange.