The government is thinking of listing Kenya Pipeline Company at the Nairobi Stock Exchange through Initial Public Offer, a move that will see the Nairobi bourse end a decade long listing drought.
The NSE Last recorded an IPO in 2015, when Stanlib Investments issued the first ever Real Estate Investment Trust (Fahari-Ireit), managing to raise Sh3.6 billion against the target of Sh12.5 billion, translating to a 28.8 per cent success rate.
The National Treasury cabinet secretary John Mbadi revealed this on Thursday after receiving an interim dividend cheque of Sh3 billion from KPC board chairperson Faith Boinett for the half-year ending December 2024.
The dividend payment brings the total dividends paid by KPC to The National Treasury in the last 12 months, to Sh10.5 billion.
“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.
As part of its business growth plans and diversification of business streams, KPC is mooting the establishment of a trading hub for receipt, trading and distribution of petroleum and petroleum products in Mombasa, which will be a boost to the regional oil and gas industry.
He said that the exchequer would support plans to wind down Kenya Petroleum Refinery and the on-boarding of it into KPC.
He said the dissolution of KPRL had taken long unnecessarily and Treasury would work with the Ministry of Energy to effect the transition, smoothly within this financial year.
Lawrence Kibet, the director
general, of Public Investments and
Portfolio Management said the
Government Owned Enterprises
(GOE) Bill 2024 had been passed
by the Cabinet and was being reviewed by the Attorney General.
