Steps to becoming a KPC shareholder

 The process is expected to net Sh106.3 billion to fill a high budget hole of close to Sh1 trillion as President William Ruto’s regime runs away from commercial loans.

 This is also part of the regime’s agenda to reduce state ownership in public enterprises, following a similar move with telecom operator Safaricom.

 The government is divesting 65 per cent of its stake (11.81 billion shares) at an offer price of Sh9.00 per share, while retaining 35 per cent 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.

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

 The IPO will run from January 19 to February 19, 2026, longer than previous offers, to allow wider retail participation. Trading on the NSE is scheduled to begin on March 9, 2026.

Minimum shares

 To participate, interested investors must buy at least 100 shares with a total value of Sh900. A valid Central Depository System (CDS) account is also needed. This account holds your shares electronically.

To obtain one, contact any licensed stockbroker or investment bank by providing a copy of your national identification document and KRA PIN.

Once you have a CDS account, you can apply to buy shares either by using the SSD option by dialing *483*816# on a registered Kenyan mobile number or go to the official KPC IPO website.

Fill in the mandatory fields, including your CDS account number, applicant type, upload required documents, and proof of payment.

Payments can be made either through an STK push or by sending money provided by the authorised selling agent. Use your unique Application Serial Number as the account number.

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

The oil transporter has allocated 20 per cent each to local retail investors, local institutional investors, and East African Community investors, while OMCs and KPC employees have been allocated 15 per cent and five per cent, respectively.

 The offer brings to an end a 10-year IPO drought at the NSE, with the last public share sale in 2015 when Stanlib Fahari I-REIT issued 625 million shares for Sh20 per share.

 The Kenya Pipeline Company operates the country’s primary petroleum transportation and storage network, moving fuel from the port of Mombasa to consumption and distribution centers across the country and the wider region.

 In the year ended June 30, 2025, KPC recorded revenues of Sh38.59 billion and a net profit of Sh7.49 billion. Earnings per share stood at Sh0.412. The company paid a dividend of Sh 0.347 per share.

Speaking during a media briefing session in Nairobi, Kenya Pipeline boss Joe Sang said that privatization paves the way for the firm to compete aggressively in the market, prioritizing maximum returns for shareholders.

According to him, the state agency capacity meant slower decision-making processes as it was answerable to several state institutions.

“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 has vowed to push KPC to at least the third most traded and profitable company at NSE, with the valuation of Sh163 billion already placing it among the top five companies at the Nairobi bourse.