Kenya has launched the sale of a 65 percent stake in its state-owned oil pipeline operator, seeking to raise KSh106.3 billion ($824 million) in what could become East Africa’s largest initial public offering in local currency terms.
The listing, which took place on Monday, is expected to surpass the landmark 2008 Safaricom Initial Public Offer (IPO), which raised just over KSh50 billion, making it the biggest share sale ever conducted in Kenya by shilling value.
In dollar terms, however, Safaricom’s offering may still rank higher, reflecting the sharp depreciation of the shilling over the past 17 years, according to data from the London Stock Exchange Group (LSEG).
Valued at KSh163.6 billion, Kenya Pipeline Company Limited is the country’s first fully electric IPO and the second biggest listing in the Nairobi Securities Exchange’s (NSE) 70-year history, NSE chief executive Frank Mwiti said in a post on LinkedIn.
The offer 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.
The government is also trimming its stake in telecoms operator Safaricom as it looks to diversify funding sources beyond taxation and borrowing.
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.
“We must turn to innovative financing mechanisms to fund our infrastructure and public service projects,” John Mbadi, the finance minister, said at the IPO launch. “The traditional methods of financing the budget — taxation and debt — no longer have sufficient space.”
The KPC IPO has been priced at nine shillings per share, according to the offer document. The sale 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.
Kenyan investment bank Faida is acting as the lead transaction adviser for the deal. Market participants expect strong demand, supported by a rally in Kenyan equities. MSCI’s Kenya stocks index has risen more than 50 percent over the past year.
The offering also comes amid a broader recovery in global equity capital markets. Global equity issuance reached $738.4 billion in 2025, up 15 percent year on year and the strongest performance in four years, with issuers in Europe, the Middle East and Africa accounting for just over one-fifth of the total.
Across Africa, six IPOs raised a combined $882.1 million last year, up 57 percent from the previous year and the highest level since 2018, LSEG data showed.