Kenya Pipeline Company’s Initial Public Offering has been pushed to 24th February after the original 19th February deadline passed amid varying valuation gaps from both Kenya and Uganda that could have triggered tepid investor confidence.

Even as the Government of Kenya courts investors from across the region where KPC plays a crucial role in driving economies, independent market analysts warn that the IPO pricing of KES9.00 per share fails to reflect the fair value of the country's largest privatization push in decades.

In update hours to the Thursday closure of the IPO, acting Privatization Authority Managing Director, Dr. Janerose Omondi, said. “The extension is aimed at ensuring broader participation and will provide investors adequate time to finalize their investment decisions in line with our commitment to inclusivity and transparency.” 

The extension of the IPO comes a week after the CMA authorized the integration of the electronic CDS account opening into the KPC IPO platform in order to enhance convenience and participation in the IPO. 

At the moment, investors can file their applications to participate in the IPO that is designed to raise KES 106.3 billion ($824 million) through stockbrokers, investment banks, authorized selling agents such as banks, as well as through the KPC IPO portal, www.kpcipo.e-offer.app or by dialing *483*816#. 

However, the extension of the IPO offer comes amid a growing chorus of independent analysts, particularly from Uganda, arguing that the shares are worth barely half what authorities in Kenya are seeking: KES9.00 ($0.07). Uganda accounts for over 30 percent of KPC's revenue streams.

Going by GoK's valuation, the state-owned fuel transporter is valued at KES163.56 billion (about $1.26 billion).

In a January update to the financial markets, two independent analysts from Uganda appeared to pick KES4.61 per share as the valuation of KPC, implying a 49 percent downside from the offer price of KES9.

Using a blended discounted cash flow and a relative valuation of the company, Old Mutual Investment Group Uganda, arrived at a KES4.61 per share valuation. Old Mutual Investment Group Uganda DCF component, using a 16.04 percent weighted average cost of capital and 3.0 percent terminal growth rate, produced KES4.26 per share.

Additionally, the firm's relative valuation, benchmarking KPC against regional utilities including electricity generator KenGen and distributor Kenya Power alongside oil and gas companies in the market, yielded KES5.27 per share valuation.

"The current IPO pricing embeds a valuation premium that may constrain near-term upside for public market investors," Old Mutual highlighted. "We anticipate a post-listing repricing as investor expectations normalise and improved trading liquidity enables clearer price discovery more closely aligned with intrinsic value."

Also offering a divergent valuation was Crested Capital. in Crested Capital's 13th February research note, explicitly factoring in KPC's planned KES110 billion capital expenditure through 2030 arrived at KES4.26 per share valuation.

Currently, Kenya Pipeline plays a crucial role in the supply of Uganda's oil needs with statistics showing that roughly 90% of Kampala's fuel imports transit through KPC. Overall, KPC's makes about 30 percent of its revenue from Uganda business.

Locally, independent analysts have also offered divergent valuation of the KPC IPO with NCBA Investment Bank estimated fair value at approximately KES6.35 per share. Standard Investment Bank's pre-offer work implied roughly KES5.61 based on a KES102 billion equity valuation.

The announcement of allocation results will be conducted on 4 March 2026 followed by electronic crediting of shares to CDS Accounts and processing of refunds by 6 March 2026. 

While launching the IPO, Treasury Cabinet Secretary John Mbadi said 15 percent of the shares have been reserved for oil marketers in Uganda, Rwanda and the Democratic Republic of Congo, with a further 20 percent set aside for East African Community citizens.

Listing and trading of KPC Shares at the Nairobi Securities Exchange (NSE) will start on 9 March 2026. 

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