The Kenya Pipeline Company (KPC) can now tap financial markets to fund regional expansion after its initial public offering was oversubscribed by 105.7 percent, signaling strong investor confidence in the state-backed oil transporter.

While releasing the IPO results on Wednesday, Treasury CS John Mbadi said the successful divesture unlocks access to funding that will enable KPC to expand its pipeline capacity, upgrade current storage infrastructure and develop its oil refinery to meet increasing fuel demand across East Africa.

"We did offer, 11,812,644,350 shares at a price of KES9 each.  The total number of shares applied for stood at 12,486,078,724 translating to an overall subscription rate of 105.7 percent. Having received full subscription of the offer shares signals a resounding vote of confidence in the government's privatization agenda," explained Mbadi at a media briefing in Nairobi.

He added, "we have allocated 7,951,752,222 shares to the Kenyan individual and institutional investors representing 67.32 percent of the offer shares while the EAC individual and institutional investors have been allocated 3,857,024,178 representing 32.65 percent of the offer shares."

Uganda's participation in the IPO, through the Uganda National Oil Company, which now owns about 21.2 percent stake vauled at KES30 billion, gave the transaction a huge boost.

CS Mbadi noted that the transaction has made KPC "a truly regional corporate." Players in Rwanda's pension sector also participated in the transaction.

KPC new ownership structure

Following the March 9th, 2026 listing at the NSE, KPC's ownership structure is expected to adjust, with the Government of Kenya controlling 35 percent stake as the second-largest shareholder after local institutional investors, such as the National Social Security Fund, who will hold 41 percent.

About 10 oil marketers participated in the IPO and will hold 0.014 percent KPC shareholding. Local retail investors will own 0.06 percent, KPC employees 0.02 percent, while foreign investors will control 0.02 percent.

Disclosures show that the divesture, which was the country's first e-IPO, meaning all applications were submitted electronically, attracted over 70,000 Kenyan.

Earlier, the governement extended the closure of the IPO by three days to 24th February from 19th February amid varying valuation gaps from both Kenya and Uganda that could have triggered tepid investor confidence.

At the time, a number of independent market analysts in both Kenya and Uganda warned that the IPO pricing of KES9.00 per share did not reflect the fair value of the country's largest privatization push since Safaricom IPO in June, 2008.

However, CS Mbadi exuded confidence that investors will gain value once the shares of the oil transporter are listed on the Nairobi Securities Exchange on 9th March 2026.

"The eventual listing of KPC at the NSE shall increase institutional investors' desired stock of assets in the Exchange and this will end up with an increase in the flows of foreign capital," stated the CS.

He added: "From a timing perspective, we are also coming to the Market to list KPC at a time when we are experiencing significant momentum at the NSE. The NSE has experienced a significant rally over the last one year — anchored by a rising market capitalization which crossed KES3 trillion in November 2025."

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