Slow start for Kenya Pipeline IPO: What you need to know
By Kenneth Mwenda, February 17, 2026With only two days left before the Kenya Pipeline Company (KPC) initial public offering closes on February 19, 2026, the government is counting on a surge of last-minute buyers.
The offer puts 11.81 billion shares on sale at Ksh9 each. The State plans to sell a 65 per cent stake and raise Ksh106.3 billion. If the IPO succeeds, trading will begin on March 9. at the Nairobi Securities Exchange.
Treasury Cabinet Secretary John Mbadi remains confident that local investors will step in before the deadline. He compared the situation to voter registration drives.
“You know how Kenyans behave, even when the IEBC is registering voters, they all come at the last minute. Let’s wait for the final week, I am sure we will have enough investors,” Mbadi said.
He added that some investor groups have shown strong demand, but he did not give firm figures.
As of last last week, brokers say subscriptions stood at about 10 per cent, or roughly Ksh11 billion. Retail investors have moved slowly despite heavy marketing through roadshows, advertising and influencer campaigns. Institutional and international investors have taken up their allocations much faster and oversubscribed parts of the offer early.
The Ksh9 share price sits at the centre of the debate. Many small investors question whether it offers value. Analysts who have reviewed the numbers say fair value estimates range between Ksh4 and Ksh6 based on earnings, assets and market comparisons. Some investors argue that the stock may not deliver quick gains at the current price.
Ugandan analysts, led by Old Mutual Investment Group (OMIG) Uganda, have joined the chorus, valuing the shares at just Ksh4.61 – nearly half the offer price – and warning of limited upside due to the embedded premium.
On paper, KPC presents strong financial figures. The company holds assets worth Ksh163 billion across the country. It posted a profit of Ksh7.49 billion last year. Over the past 12 months, it paid Ksh10.5 billion in dividends to the Treasury.
KPC operates Kenya’s main fuel pipelines and storage facilities. It transports fuel across the country and to landlocked neighbours in East Africa. This position gives it steady demand and a central role in the region’s energy supply chain.
The company has also pledged to distribute 50 per cent of net profits as dividends to shareholders. It carries no debt, which strengthens its image as a stable, income-focused investment.
Retail push, infrastructure plans
The government has structured the offer to favour local participation. It set aside 60 per cent of the shares for Kenyan investors. Within this portion, 20 per cent goes to retail investors, 20 per cent to local institutions and the rest to oil marketers and employees. East African and international investors will share the remaining 40 per cent.
Officials hope to attract up to two million retail investors, a record number for Kenya. To widen access, they kept the subscription window open for a full month, longer than most past IPOs. They also launched Ziidi Trader on February 10. The Safaricom-backed platform allows M-Pesa users to buy shares directly from their phones without using a broker.
Mbadi has also responded to fears that privatisation could lead to higher fuel prices. He said the Energy and Petroleum Regulatory Authority (EPRA) controls tariffs and will continue to protect consumers.
The government plans to use the proceeds to fund projects in roads, irrigation, health, education and security. Mbadi has said taxes and borrowing cannot meet all development needs.
The state also plans to channel funds through a new National Infrastructure Fund to attract further private investment. Kenya aims to increase power generation from three million to 10 million megawatts, and officials say asset sales such as this will help close the gap.
Critics warn that low subscriptions could force the government to extend the deadline or adjust the terms. Officials, however, continue to bet on a late rush. The IPO requires at least 250 applicants and a minimum subscription of 50 per cent of the shares on offer. If certain categories fall short, regulations allow the company to reallocate shares, starting with local retail investors.
Investors can still apply through banks, brokers or Ziidi Trader until 5pm on February 19. Allocation results will come on March 4.