Kenya Launches $825 Million IPO for State Oil Pipeline Firm

• The IPO is priced at 9 shillings per share, aiming to raise 106.3 billion Kenyan shillings ($825 million) through the 65% stake sale
• The offering exceeds Safaricom's previous regional IPO record and aligns with a global equity capital markets recovery, which saw $738.4 billion raised in 2025, up 15% year-over-year
• Proceeds will fund new infrastructure projects and sovereign wealth funds as part of the Ruto administration's broader state company divestment strategy

Summary: Kenya Launches $825 Million State Oil Pipeline IPO

Kenya initiated the sale of a 65% stake in Kenya Pipeline Company on Monday, January 19, targeting 106.3 billion shillings ($825 million) in what will be East Africa's largest-ever initial public offering.

Key Transaction Details:

• Share price: 9 shillings per share
• Stake offered: 65% of Kenya Pipeline Company
• Total value: $825 million (106.3 billion shillings)

Strategic Context:

The divestment is part of President William Ruto's broader initiative to reduce state ownership in government-controlled companies. Proceeds will fund new infrastructure projects and sovereign wealth funds. The government is also planning similar stakes sales in telecommunications operator Safaricom.

Market Significance:

This IPO surpasses the previous regional record held by Safaricom's initial offering, establishing a new benchmark for East African capital markets. The timing aligns with a global recovery in equity capital markets, which have seen robust activity amid record-high stock market valuations.

Global Context:

According to LSEG data, global equity capital markets activity reached $738.4 billion in 2025, representing a 15% year-over-year increase—the strongest four-year period for such activity. Europe, Middle East, and Africa accounted for just over one-fifth of total global equity capital markets offerings.

Market Implications:

The successful launch demonstrates growing investor confidence in emerging African markets and could encourage similar privatization initiatives across the region. The transaction signals Kenya's commitment to market-oriented reforms and infrastructure development financing through asset monetization.

Exchange rate: $1 = 128.90 Kenyan shillings