Govt defends KPC amid concerns over shares overvalution
By Emmanuel Rono, March 10, 2026Privatisation Authority Acting Managing Director Janerose Omondi has stepped forward to defend the Ksh9-per-share valuation of the Kenya Pipeline Company (KPC) following its market debut, dismissing concerns from analysts who suggested the stock was overpriced.
Speaking during an interview with a local media on Tuesday, March 10, 2026, Janerose clarified that KPC’s pricing reflects its status as a strategic, regional monopoly.
No direct comparison for KPC
According to Janerose, people thought the valuation was overvalued due to comparison with other companies that are not comparable.
“In the country or the region, there is no direct comparison for Kenya Pipeline; it is a monopoly, and the nearest comparator we got was the pipelines in India,” Janerose stated.
She added, “People thought it was overvalued just because they are comparing a manga and a banana, things that are not comparable.”
The IPO had an overall over-subscription rate of 105.7 per cent, but a closer look at the data shows that there is a big difference in how confident investors are, which has led to a national debate over what the company’s “fair value” really is.
According to Janerose, the excess uptake was by institutional investors who were able to calculate and determine whether it was a good business case or not.
She insisted that the price might increase in the secondary market.
“When you see the uptake, there is over subscription, 105 per cent, the uptake is by institutional investors who are able to calculate and determine whether this is a good business or not, unlike retail investors who, most of them, are not able to do their calculations, they believe what is being said,” Janerose said.
Kenya Pipeline IPO results
According to the IPO results published on March 4, 2026, investors subscribed to 12.49 billion shares worth a total of Ksh112.37 billion, representing a subscription rate of 105.7 per cent.
The offer initially comprised 11.81 billion shares priced at Ksh9 per share. Kenyan institutional investors accounted for the largest allocation, receiving 7.45 billion shares, followed by East African investors with 3.86 billion shares.
Kenyan retail investors were allocated 464.8 million shares, while foreign investors received 3.87 million shares.
KPC employees and oil marketing companies were allocated 11.02 million and 25.76 million shares, respectively.