Kenya Pipeline Company (KPC), the state-owned oil infrastructure operator, is set to debut on the Nairobi Securities Exchange (NSE) before the end of the year, President William Ruto announced yesterday. The Initial Public Offering (IPO) marks the first in a series of planned listings aimed at deepening domestic capital markets, boosting investor confidence, and reducing the country’s reliance on foreign debt.
The announcement was made during a symbolic bell‑ringing ceremony at the London Stock Exchange (LSE), part of the broader Africa Debate Forum attended by African leaders, policymakers and global investors. “We plan to list the Kenya Pipeline Company through an IPO in 2025, offering investors a unique opportunity to deploy capital in one of Kenya’s most strategic infrastructure enterprises,” Ruto said.
In February, Treasury Cabinet Secretary John Mbadi revealed that the government was considering the listing of Kenya Pipeline Company after receiving a second dividend cheque, bringing the company’s total payout to the exchequer in 2024 to KSh 10.5 billion.
President Ruto emphasised that privatising state assets through an organised, time‑sensitive programme would help mobilise domestic savings, attract international capital, and finance long‑term infrastructure projects.
If the Kenya Pipeline Company (KPC) is successfully listed, it would become one of the few state-owned enterprises trading on the Nairobi Securities Exchange (NSE), joining the ranks of KenGen, Kenya Power, and Kenya Re-Insurance Corporation (Kenya Re).
These parastatals have long served as key indicators of government participation in capital markets, and KPC’s inclusion would not only deepen public sector representation on the bourse but also signal renewed momentum in the government’s broader privatisation agenda.
The move is expected to enhance transparency, improve corporate governance, and attract both local and international investors to one of Kenya’s most strategic infrastructure assets.
He noted that reforms at the NSE driven by a refreshed, market‑focused strategy are already paying dividends. Morgan Stanley Capital International ranked the exchange as Africa’s top performer in dollar returns in 2024.
“Capital markets play a critical role as catalysts for sustainable economic growth and shared prosperity across the African continent,” he added.
The listing of KPC will also form part of a broader push to unlock value in public assets via private‑sector participation and asset securitisation. President Ruto referenced a recent $1.3 billion raised through securitising roads, with plans to list these bonds on the NSE to broaden investor access.
Kenya’s pivot towards market‑based financing comes amid efforts to heal the wounds from last year’s widespread protests, which forced the government to abandon tax increases worth 346 billion Kenyan shillings (approximately $2.7 billion). The move signals a shift toward sustainable, homegrown funding sources over external aid and loans.
During his London address, Ruto emphasised that beyond IPOs, Kenya will engage the private sector in delivering public services for instance, hospital equipment will be leased on a usage‑fee basis. This reflects a broader vision to harness private investment for national infrastructure and service delivery.
UK‑backed initiatives like Mobilist and Financial Sector Deepening Africa (FSD Africa) were praised for expanding access to green bonds, gender financing, and inclusive markets a sign of growing partnership between Kenya and global financial institutions.
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