Kenyans have been invited to participate in the Kenya Pipeline Company (KPC) Initial Public Offering as the listing opens at the Nairobi Securities Exchange (NSE).
In a statement on Monday, January 19, NSE described the IPO as an opportunity for citizens to directly invest in a critical national asset.
"The Kenya Pipeline IPO presents a rare and compelling opportunity for Kenyans to invest directly in one of the nation’s most strategic assets-its energy infrastructure," the statement read.
NSE highlighted the economic significance of public participation in the offer, linking ownership to national growth and development priorities.
"By participating in this landmark offering, citizens can take ownership in a company that underpins economic growth, supports energy security, and plays a vital role in powering Kenya’s development agenda," the statement added.
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According to the offer details, the Kenya Pipeline IPO has been priced at Ksh9.00 per offer share, with a par value of Ksh0.02 per share.
The company’s authorised share capital stands at Ksh387,391,600, while the total number of issued ordinary shares is 18,173,299,000.
Additionally, NSE noted that IPO will make available 11,812,644,350 offer shares to investors.
Financial performance indicators disclosed in the offer document show a Dividend Per Share (DPS) of Ksh324.7 for the twelve-month period ended June 30, 2025, translating to a post-share split DPS of Ksh0.347.
Over the same period, the company reported Earnings Per Share (EPS) of Ksh412.2, or Ksh0.4122 post-share split.
Kenya Pipeline also posted a reported EBITDA of Ksh18,593,941,000, with an implied EV/EBITDA multiple of 8.1 times.
In a report, the National Treasury explained that the IPO pricing is based on the company’s earnings strength and its ability to deliver returns to shareholders.
"The offer price for the Kenya Pipeline Company (KPC) IPO is anchored on an earnings-based valuation approach, primarily using earnings multiples specifically the EV/EBITDA multiple.
"The earnings profile reflects the company's capacity to generate distributable returns to shareholders. Accordingly, this approach aligns the valuation with the investment proposition being assessed by investors," the report read.
The ministry further noted that the valuation approach was deliberately chosen to reflect market expectations and ensure comparability with similar firms.
"Furthermore, the use of earnings multiples reflects KPC's capacity to generate sustainable earnings and dividends; aligns with investor decision-making on the Nairobi-Securities Exchange (NSE), which is strongly driven by earnings and dividend considerations; and ensures transparency and comparability with regional and global infrastructure peers," the report added.
Treasury added that, in the context of a public offering, the chosen methodology provides a realistic benchmark for investors assessing future profitability.
"In the context of an IPO, where investors typically assess pricing relative to forward profitability, the earnings-based approach provides a pragmatic, market-aligned basis for valuation, supported by asset-and income-based cross-checks for reasonableness," the report further read.
According to the report, the offer period for the Kenya Pipeline IPO opens on January 19, 2026 and will close on February 19, 2026.
The announcement of allocation results is scheduled for March 4, 2026, with the final date of payment on guarantees set for March 5, 2026.
Electronic crediting of shares to CDS accounts and processing of refunds will both take place on 6 March 2026, ahead of the commencement of trading of KPC shares at the NSE on March 9, 2026.
Notably, this comes days after Busia Senator Okiya Omtatah and two other petitioners filed a constitutional challenge seeking to halt the government's plan to sell 65% of KPC.
On January 2, 2026, Omtatah, along with Bernard Muchiri Muchere and Naomi Nyakerario Misati, filed a constitutional petition at the High Court of Kenya, challenging the proposed sale.
The petitioners argue that the plan to divest 65% of KPC through an initial public offering (IPO) violates constitutional principles and undermines national sovereignty.
"This plan is unconstitutional, unlawful, and anti-sovereign. It is not a decision of the people of Kenya, but one driven by external pressure from the International Monetary Fund," Omtatah stated.
The petitioners emphasize that KPC is a profitable, fully publicly owned strategic asset.
As such, the petitioners are seeking a court declaration that the entire privatization process is unconstitutional, requesting that all related decisions and notices be quashed, and asking for a permanent injunction barring any further steps toward the sale of KPC.
Omtatah emphasized that this is a public-interest case with no compensation or costs sought.
"Our sole objective is to defend the Constitution and protect public assets that belong to all Kenyans, today and for generations to come," he added.
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