Former legislator and lawyer Paul Muite has expressed concerns over the government’s move to sell 65 per cent of Kenya Pipeline Company (KPC) shares to the public. Muite reacted sharply after the government announced the Initial Public Offering (IPO) at the Nairobi Securities Exchange (NSE) on Monday, January 19, 2026.

“Proceeds will go to the Infrastructure Bond. Control/Expenditure will avoid Parliamentary & Constitutional safeguards. Looting loophole,” Muite said in a post on X, on Monday, highlighting what he described as risks of insufficient oversight in managing the funds raised from the IPO.

The government plans to raise about Ksh106.3 billion by offering 11.8 billion KPC shares at Ksh9.00 per share, implying a market capitalisation of around Ksh163.6 billion. The IPO will run from January 19 to February 19, 2026, longer than previous offers, to allow wider retail participation. Trading on the NSE is scheduled to begin on March 9, 2026.

Largest fully electronic IPO

Authorities describe the IPO as the country’s largest and first fully electronic public offer. Share allocation is structured across investor groups: 20 per cent local retail, 20 per cent local institutional, 20 per cent regional (EAC), 20 per cent international, 15 per cent oil marketing companies, and 5 per cent KPC employees.

The government says the sale will fund priority projects under the national budget and channel part of the proceeds into the National Infrastructure Fund, supporting sectors like energy, roads, water, and airports. Cabinet Secretary John Mbadi Ng’ongo said the IPO would deepen Kenya’s capital markets and boost economic growth.

He described the transaction as “asset optimisation, not asset disposal,” adding that the sale transforms public equity into diversified national capital while retaining 35 per cent government ownership to protect strategic interests.

KPC operates a 1,300-kilometre pipeline network that transports petroleum products across Kenya. The company handles over 90 per cent of the country’s fuel imports. For the year ending June 30, 2025, KPC reported revenues of Ksh38.6 billion and profit after tax of Ksh10.37 billion, which the government cites as justification for the public offer.