The Kenya Pipeline Company (KPC) is set for transformation as President William Ruto has confirmed it will be listed on the Nairobi Stock Exchange (NSE) through an initial public offering (IPO) this year.
Ruto, who is currently in the UK, said on Wednesday during the London Stock Exchange market opening ceremony that KPC’s listing is among his government’s plans to widen the local stock market while opening several state corporations to foreign investment.
“We are committed to a structured, time-sensitive programme that identifies and prepares a robust pipeline of key government assets to be privatised through the stock exchange or improved through private sector participation,” the President said.
“As part of this initiative, we plan to list the Kenya Pipeline Company through an IPO in 2025, offering investors a unique opportunity to deploy capital in one of Kenya’s most strategic infrastructure enterprises.”
If listed, KPC would join KenGen, Kenya Power, and Kenya Reinsurance Corporation (Kenya Re) among the NSE-listed state corporations.
As part of KPC’s expansion strategy, the company is exploring the establishment of a petroleum trading hub in Mombasa to facilitate the receipt, trading, and distribution of fuel products across the region.
The corporation also seeks to wind down the Kenya Petroleum Refineries and integrate it into KPC’s operations.
In February this year, John Mbadi, Treasury Cabinet Secretary, said KPC has numerous benefits to realize from a listing at the stock exchange, citing Safaricom and the Kenya Electricity Generating Company (KenGen)’s performance since being publicly traded.
“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,” Mbadi said.
Source: https://energynewsafrica.com
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