Treasury Cabinet Secretary John Mbadi has announced strong participation in the Kenya Pipeline Company Initial Public Offer. He confirmed that Kenyans and local institutional investors purchased 7.9 billion shares during the offer.
Mbadi said the government raised Ksh106.7 billion from the share sale. He noted that regional neighbours also participated actively in the historic transaction.
Uganda, Rwanda, and other East African Community members acquired a combined 3.8 billion shares. These purchases reflect growing regional confidence in Kenya’s energy infrastructure and capital markets.
Rwanda bought its allocation through national pension funds to diversify its investment portfolio. Kenya has also unveiled plans to securitise National Social Security Fund savings for similar diversification objectives.
The government offered 12.4 billion shares at Ksh9 each during the IPO. Investors applied for more shares than available, pushing the subscription rate above expectations.
“We offered 11,812,644,350 shares at 9 shillings each. The total number of shares applied for stood at 12,486,78,724, translating to an overall subscription rate of 105.7 per cent,” Mbadi said during the announcement.
Mbadi dismissed claims that the shares carried inflated prices. He accused unnamed individuals of attempting to frustrate the process through misleading statements.
The government rejected several bids because investors oversubscribed the offer. Uganda had expressed interest in acquiring a larger stake than allocated.
The government will retain a 35 per cent controlling stake in Kenya Pipeline Company. The East African Community bloc will now hold a 21.22 per cent stake, equivalent to 3.8 billion shares.
Kenyans and local institutional investors acquired 7.95 billion shares. Their purchase represents approximately 67.32 per cent of the total shares offered.
Foreign investors will control only 0.02 per cent of the company. Local institutional investors will command 41 per cent under the final allocation structure.
Retail investors will own 2.56 per cent of the company. KPC employees will hold 0.06 per cent, while licensed oil marketing companies will own 0.041 per cent.
Kenya Pipeline Company will begin trading on the Nairobi Securities Exchange on March 9. The listing will become the fifth company on the current trading board.
Mbadi addressed concerns regarding the proposed National Investment Fund during the announcement. He explained that the government will deposit proceeds into the Consolidated Fund before Parliament approves transfers through appropriation.
The Cabinet Secretary emphasized that the IPO demonstrates investor confidence in Kenya’s economic direction. He added that the strong regional uptake strengthens economic ties within the East African Community and deepens capital market integration.
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