Standard Investment Bank(SIB) Research has valued Kenya Pipeline Company (KPC) at about KSh 102 billion ahead of its planned listing on the Nairobi Securities Exchange by March 2026.
- •The valuation, based on a 1.2× price-to-book multiple, positions KPC among the most valuable State corporations in Kenya.
- •The government intends to sell up to 65% of its stake while retaining a minimum 35%.
- •According to the SIB report, KPC closed its 2023/24 financial year with total equity of KSh 89 billion, retained earnings of KSh 77 billion, and a net profit of KSh 6.9 billion, translating to a 7.7 percent return on equity.
The company held KSh 6.5 billion in cash and operates 1,342 kilometers of pipeline with 884,000 cubic meters of storage across seven depots in Mombasa, Nairobi, Nakuru, Eldoret, and Kisumu, as well as aviation hydrant systems at Jomo Kenyatta and Moi International Airports.
If listed at SIB’s fair value, KPC would rank as the ninth most valuable company on the Nairobi Securities Exchange, joining an elite group of eight firms with market capitalizations above KSh 100 billion. These include:
- •Safaricom KSh 1.1 trillion
- •Equity Group KSh 226.4 billion
- • KCB Group KSh 185.6 billion
- •EABL KSh 169.2 billion
- •NCBA Group KSh 150.3 billion
- •Absa KSh 121.7 billion
- •Co-operative Bank KSh 117.3 billion
- •Standard Chartered Bank Kenya KSh 107.9 billion
The privatization will be the first major State listing since the Safaricom IPO in 2008. Request for Proposals for transaction advisers have already been issued, with submissions due by October 21, 2025.
The Privatization Commission will oversee the process under parliamentary scrutiny and new transparency rules. The Office of the Auditor-General is required to audit the transaction and submit a post-completion report within six months.
SIB notes that KPC’s dominant role in the transport and storage of petroleum products, combined with steady cash generation and a strong balance sheet, underpins its intrinsic value.
The brokerage adds that easing interest rates and increased investor appetite for infrastructure-linked assets could lift the company’s fair value further.
If completed on time, the KPC IPO will mark a major test of Kenya’s new privatization law and provide a benchmark for future State listings. The transaction could also deepen market liquidity, attract new institutional investors, and expand the exchange’s exposure to critical infrastructure assets.
