President William Ruto has assured Kenyans that money raised from the Kenya Pipeline Company initial public offering will be directed to the National Infrastructure Fund to finance key development projects across the country.
The president said the funds will support investments in roads, railways, ports, energy and agribusiness infrastructure as the government seeks new ways to mobilise capital for long term economic growth.
The share offer, which marked Kenya’s first fully electronic initial public offering, attracted strong public interest and drew participation from more than 70,000 ordinary investors. The milestone transaction broadened share ownership among citizens while also strengthening the country’s capital markets.
Speaking on Monday during the bell ringing ceremony at the Nairobi Securities Exchange, the president described the listing as an important step toward raising investment for the country’s long term development agenda.
He said the government plans to channel the IPO proceeds through the National Infrastructure Fund, which has recently been reinforced through a new law that establishes an independent board, clear investment rules and professional fund management.
President William Ruto leads Kenya Pipeline IPO, Nairobi Securities Exchange in Nairobi on March 10, 2026 PHOTOS/PCSFinancial experts say the improved legal structure strengthens governance and “shields it from earlier concerns of political interference,” helping build confidence among investors who expect transparency in how the funds are managed.
The offering introduced several milestones in Kenya’s capital markets. It was the country’s first fully electronic IPO, meaning all applications were submitted digitally, making the entire process paperless.
President Ruto said the move helped expand share ownership among Kenyans, with more than 70,000 citizens participating in the offer. He noted that this reflects the government’s policy of “democratising public assets.”
The share offer also attracted strong regional participation. The government of Uganda, represented by its energy chargé, made a notable investment, highlighting the company’s role as a regional energy player. Rwanda’s pension scheme also bought shares, adding to the company’s growing East African presence.
According to the president, the legal process behind the IPO followed a strong regulatory framework anchored in the Privatisation Act, with oversight from the Capital Markets Authority and the Nairobi Securities Exchange.
He explained that this was the first government led IPO to be completed under a structured legal framework after broad public participation and strict regulatory compliance. This approach, he said, differs from earlier public offerings that were conducted mainly under policy guidelines.
Ruto also emphasised the importance of capital markets in driving economic growth. He said the markets play a central role in mobilising savings, directing investments and creating wealth for citizens.
The president pointed to the rapid use of digital platforms during the share offer, noting that the Safaricom ZD app enabled more than 36,000 Kenyans to participate in the IPO within just a week of its launch.
With the Kenya Pipeline Company now operating as a public limited company, the listing is expected to give institutional investors new investment options. Mutual funds, pension funds and insurance firms now have additional instruments to diversify their portfolios, a move that is expected to attract more local and foreign capital to the Nairobi Securities Exchange.
The listing is also expected to support the company’s future growth. The president said the divestiture will allow Kenya Pipeline to expand pipeline capacity, upgrade facilities and invest in the development of an oil refinery to meet increasing demand for petroleum products across the region.
National Treasury Secretary John Mbadi thanked Parliament for passing the laws that made the IPO possible and acknowledged the various institutions and professionals who contributed to the process.
He recognised the role played by the Privatisation Commission board and management, the Kenya Pipeline board led by its chair and the company’s managing director. Mbadi also thanked advisers, accountants, stockbrokers, investment banks and technical partners who supported the complex transaction.
The Treasury secretary further commended financial institutions including KCB Bank and Cooperative Bank for providing technical expertise that helped structure and execute the share offer. He also acknowledged the National Treasury team for guiding the process.
The involvement of regional investors was also seen as a strategic step toward strengthening Kenya Pipeline’s position within the East African petroleum sector. By leveraging its extensive pipeline network and operational expertise, the company is expected to deepen regional cooperation in energy infrastructure.
Financial expert Hesbon Omollo said the strengthened governance framework of the National Infrastructure Fund and its professional management will play a crucial role in ensuring the IPO proceeds deliver long term value for Kenyans.
He noted that the fund’s focus on viable and catalytic projects, supported by clear investment guidelines and protection from political pressure, could reshape the way Kenya finances major infrastructure projects.
The Kenya Pipeline listing comes at a time when the country is intensifying its infrastructure development agenda. Ongoing plans include expanding national highways, rail connections, airport and seaport facilities, power generation and distribution networks, as well as irrigation and agribusiness infrastructure.
Ruto said directing the IPO proceeds to these sectors is meant to reassure both investors and the public that the transaction is designed to support the country’s wider development priorities.
As trading of Kenya Pipeline shares begins at the Nairobi Securities Exchange, market observers say the successful IPO signals growing maturity in Kenya’s capital markets. They believe it could pave the way for more public asset offerings carried out under strong legal frameworks and clear regulatory oversight.
