The government is exploring the option of listing Kenya Pipeline Company (KPC) on the Nairobi Stock Exchange (NSE) through an Initial Public Offering (IPO).
The announcement was made on Thursday, February 6, by the National Treasury Cabinet Secretary John Mbadi, during an event to receive a Ksh3 billion interim dividend from the KPC Board at the company’s headquarters in Nairobi.
According to the CS, the move could see KPC benefit from increased liquidity and capital as it expands its operations.
Further, Mbadi explained the potential benefits of listing on the NSE, comparing it with corporate giants like Safaricom and KenGen, who have significantly benefited from going public.
“We have this feeling that KPC needs to realise the benefits that will accrue from a listing at the Stock Exchange.
“Listing will be a good idea especially as KPC expands into the region because it will provide much-needed liquidity and capital for expansion and diversification into LPG, Kenyans will have a chance to own a piece of KPC,” said Mbadi.
Also Read: Relief as John Mbadi Explains Why Govt Won’t Increase Taxes in 2025
Upcoming Kenya Pipeline Company (KPC) Projects
At the same time, the CS announced that one of KPC’s major upcoming projects is the establishment of a trading hub for the receipt, distribution, and trading of petroleum and petroleum products in Mombasa.
This initiative is expected to support the growth of the oil and gas industry in the region.
Additionally, KPC is positioning itself as a leader in regional fuel transportation, holding a 90% stake in fuel transport to Uganda and working to expand its reach into Rwanda.
“As KPC continues to expand into new areas such as Liquefied Petroleum Gas (LPG) and infrastructure development, the government sees the listing as a key step in ensuring that KPC remains competitive in the regional energy sector.”
Also, Mbadi outlined plans to wind down Kenya Petroleum Refinery Limited (KPRL) and merge it with KPC.
According to him, the process had taken longer than expected but assured that the National Treasury would collaborate with the Ministry of Energy to ensure a smooth transition within this financial year.
The dissolution of KPRL is seen as an essential step in streamlining Kenya’s energy sector and maximizing the efficiency of state-owned energy companies.
Also Read: Kenya Pipeline Boss Cornered Over a Ksh 700M Land
KPC Performance
Lawrence Kibet, Director General of Public Investments and Portfolio Management at KPC, revealed that the Government Owned Enterprises (GOE) Bill 2024, which is being reviewed by the Attorney General, aims to improve the governance structures of state-owned enterprises.
The bill’s purpose is to ensure that public corporations operate more independently, with fewer bureaucratic hurdles, therefore ensuring that they can compete effectively in the market while generating a higher return on investment for the government.
KPC has contributed Ksh63 billion in tax and dividends over the past decade.
In the year 2023-24, the company posted a profit before tax of Ksh10.1 billion, marking an increase from Ksh7.6 billion in the previous year.
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