Kenya Pipeline Company Unveils Share Allocation Plan for Landmark IPO
News Updated: 17 February 2026 14:33 EAT
The Kenya Pipeline Company has detailed how shares in its planned initial public offering will be distributed, as the State moves to widen ownership of the strategic petroleum transporter. The government is divesting a 65 percent stake through the public offer in one of the largest listings ever undertaken by a state corporation.
The IPO comprises approximately 11.8 billion ordinary shares priced at Sh9 each, targeting to raise about Sh106 billion if fully subscribed. The offer opened in January and is scheduled to close in February, with listing expected thereafter subject to regulatory approvals.
Under the allocation framework, Kenyan retail investors have been reserved 20 percent of the shares, giving individual citizens a direct opportunity to participate in the ownership of the company. Authorities say the move is aimed at deepening public participation in capital markets.
A further 20 percent has been set aside for Kenyan institutional investors, including pension schemes, insurance firms and fund managers. This category is expected to provide stability in the shareholder base given its long-term investment outlook.
Investors from the East African Community will also receive 20 percent of the shares, reflecting efforts to enhance regional integration through cross-border investment. The allocation is designed to attract capital from neighbouring economies.
Foreign investors have similarly been allocated 20 percent of the offer, a move intended to draw international capital into Kenya’s equities market and boost foreign participation in the country’s flagship privatisation programme.
Oil Marketing Companies, which are key clients of the pipeline network, have been allocated 15 percent of the shares. The allocation is expected to align strategic industry players with the company’s operational future.
Employees of the pipeline company will acquire up to 5 percent of the shares under a staff allocation scheme aimed at promoting internal ownership and strengthening employee commitment to performance targets.
Upon completion of the offer, the shares are expected to begin trading on the Nairobi Securities Exchange, marking a significant milestone in the government’s broader plan to reduce state ownership in select enterprises while expanding investor participation in the local capital markets.
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FELIX MAKONA
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