Kenya Launches $824M IPO for Kenya Pipeline Co. (KPC) to Fund Energy Infrastructure

Kenya has launched its largest-ever initial public offering, listing 65% of state-owned Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange. The IPO, open from January 19 to February 19, 2026, aims to raise 106.3 billion Kenyan shillings ($824 million) from domestic and international investors. Proceeds will fund national energy infrastructure projects, with no funds retained by KPC. Once listed, KPC is expected to rank as the fifth-largest firm on the exchange by market cap. The company operates 1,342 kilometers of pipelines linking Mombasa to inland regions and runs refineries, labs, and fiber optic networks. KPC plans $852 million in capital expenditures by 2030 to expand pipelines and build crude and LPG storage facilities, including a new Mombasa-Nairobi line. It forecasts gross profit margins averaging 61% through 2030, up from 57% over the past five years. Major risks include Uganda’s $5-billion East African Crude Oil Pipeline (EACOP), nearing completion, and plans for a Ugandan refinery by 2029/30, which could challenge KPC’s regional dominance. KPC maintains imported refined oil will remain more cost-competitive long-term.