Kenya Pipeline Company has announced an IPO price of Sh9 per share, valuing the firm at about Sh163.6 billion.
The government plans to raise Sh106.3 billion by selling a 65 percent stake, with proceeds earmarked for the FY2025/26 budget, as trading is set to begin on the Nairobi Securities Exchange in March.
The valuation is based on 18.17 billion shares outstanding, placing the state-owned energy infrastructure firm among the most valuable companies ever to list on the Nairobi Securities Exchange. The offer opens on January 19, 2026, and closes a month later on February 19, 2026.
According to the transaction details, the pricing has been anchored on an earnings-based approach. An implied enterprise value to Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) multiple of 8.1 times has been applied to the company’s projected FY2025 EBITDA of Sh18.6 billion.
This translates into an enterprise value of about Sh150.6 billion.
From the offering, the Government of Kenya expects to raise approximately Sh106.3 billion in gross proceeds.
This will be achieved through the sale of 11.81 billion shares at the offer price of Sh9 each. The sale represents a 65 percent divestment by the State.
All proceeds from the IPO will accrue directly to the National Treasury and are intended to support the FY2025/26 budget financing plan.
The transaction comes at a time when the government is under pressure to widen its revenue base and reduce reliance on debt.
Following the sale, the government will retain a 35 percent stake in Kenya Pipeline Company. This remaining shareholding will be subject to a 24-month lock-in period, preventing immediate disposal and signalling a continued strategic interest in the company.
Kenya Pipeline Company plays a central role in the country’s energy supply chain, operating critical fuel transportation and storage infrastructure.
Its listing is expected to broaden investment opportunities on the Nairobi Securities Exchange and deepen the capital markets.
The IPO timetable outlines a tightly sequenced process. Allocation results are due to be announced on March 4, 2026, with final payments on guarantees scheduled for the following day.
Shares are expected to be credited to investors’ CDS accounts on March 6, 2026, the same day refunds will be processed.
Trading of Kenya Pipeline Company shares on the Nairobi Securities Exchange is set to begin on March 9, 2026.
Market participants will be watching closely to see how the stock performs, given its size, strategic importance, and the scale of government divestment.
The offering represents one of the most significant public sector listings in Kenya’s history, both in terms of valuation and the level of fiscal impact anticipated from the proceeds.
