KPC Announces 105.7% Subscription as KPC IPO Raises Sh106.7 Billion
CS John Mbadi speaking during the KPC IPO results announcement in Nairobi on Wednesday March 04, 2026
The Kenya Pipeline Company (KPC) Initial Public Offer (IPO) was oversubscribed at 105.7 per cent, raising Sh106.7 billion in what has been described as a milestone for Kenya’s capital markets and privatization agenda.
Speaking during the official release of the IPO results in Nairobi on Wednesday, Cabinet Secretary for the National Treasury and Economic Planning John Mbadi said 12.48 billion shares were applied for against the 11.81 billion shares on offer at Sh9 per share.
“We have allocated 7.95 billion shares to Kenyan individual and institutional investors, representing 67.32 per cent of the offer shares,” Mbadi said. East African Community investors accounted for the remaining allocation, positioning KPC as what he termed a “regional company.”
The IPO, which opened on January 19 and closed on February 24, attracted more than 70,000 investors and was conducted entirely electronically, marking Kenya’s first fully paperless government-led IPO.
Mbadi said the proceeds would be deployed into the proposed National Infrastructure Fund (NIF), currently before the National Assembly. He clarified that once assented to, the fund would operate as an investment vehicle designed to crowd in private capital into commercially viable infrastructure projects.
“This fund is not going to operate like the normal budgetary process. It will analyze projects, undertake feasibility studies and only invest in commercially viable ventures,” he said, adding that funds received in the interim would be held in the Consolidated Fund before appropriation.
The CS defended the valuation amid concerns raised during the offer period, stating that institutional participation validated the pricing model.
Dr. Kenne Belgrad, Lead Transaction Advisor at Faida Investment Bank, said professional and institutional investors had endorsed the valuation through strong uptake.
“When you deal with people who understand valuation, they will tell you this is a buy,” Belgrad said, noting that 645 institutional investors participated in the offer.
He added that regional participation included oil marketing companies, and once allocations were rebalanced, local participation remained dominant.
The government also confirmed Uganda’s participation as a strategic investor, describing it as safeguarding one of KPC’s key regional markets.
Mbadi said the IPO aligns with broader economic reforms, citing stabilized inflation at about 4.3 per cent, easing interest rates, currency stability and improved liquidity in the banking sector.
He signaled that the privatization drive would continue, stating the government intends to reduce direct involvement in commercial enterprises and deepen capital markets development.
“With this divestiture, KPC transitions into a properly positioned regional company,” Mbadi said, adding that further listings remain under consideration as part of ongoing state corporation reforms.
