The government has unveiled the final pricing for the privatisation of the Kenya Pipeline Company (KPC). The Kenyan government has priced KPC shares at KSh 9.00 each. The release of the information memorandum has set the stage for citizens to own a piece of the national fuel transporter. How much is the price of the Kenya Pipeline Company shares? The National Treasury, through the Privatisation Authority, will offer 11,812,644,350 ordinary shares at an offer price of KSh 9.00 per share. This represents a 65% stake in the company, implying a total equity valuation of about KSh 163.6 billion for KPC. The sale, managed by Faida Investment Bank, is a centerpiece of the government’s “Unlocking Value, Enhancing Productivity” agenda and will be one of the most significant corporate events in Kenya’s capital markets history. What is the financial profile and valuation of Kenya Pipeline? According to the IPO prospectus, Kenya Pipeline Company (KPC) shows strong financial health to investors, reporting an Earnings Per Share (EPS) of KSh 412.2 and a Dividend Per Share (DPS) of KSh 324.7 for the year ending June 2025. These figures are pre-split, with post-split adjusted values at KSh 0.4122 for EPS and KSh 0.347 for DPS, while its EBITDA stood at a robust KSh 18.59 billion. The government set the share price at KSh 9.00 using an earnings-based valuation, specifically an EV/EBITDA multiple of 8.1 times. What are the key dates for the KPC IPO? The government released a tentative calendar for the share sale process. The offer opens on January 19, 2026 and closes on February 19, 2026. This provides a one-month application window and the allocation results will be announced on March 4, 2026. The final payment date is March 5, 2026 and shares will be credited to CDS accounts on March 6, 2026. Trading on the NSE will commence on March 9, 2026. The Treasury noted these dates are subject to change upon approval from the Capital Markets Authority. Commenting on the IPO, James Kamanja, a market analyst said, “This IPO is unprecedented in scale for the NSE because the sale of 11.8 billion shares dwarfs previous offers and is expected to significantly deepen the market by attracting hundreds of thousands of new retail investors. For Kenyans, it represents a rare opportunity to invest directly in a strategic, profit-making national monopoly with a visible role in the economy. The promised dividend yield, based on the last payout, could be an attractive income stream for shareholders.” READ ALSO Kenyans react after EPRA cuts petrol price by KSh 2, diesel and kerosene by KSh 1 The success of this offering is also seen as a critical test of investor confidence in both the government’s privatisation program and the capacity of the local capital markets to absorb mega-listings.
By Elijah Ntongai
