The Kenya Pipeline Company (KPC) is considering issuing an Initial Public Offering (IPO) at the Nairobi Securities Exchange (NSE).
This is according to National Treasury Cabinet Secretary John Mbadi as he received an interim dividend cheque of Sh3 billion from KPC Board Chair Faith Boinett at the company’s headquarters in Nairobi. This payment brings KPC’s total dividend contribution to the National Treasury to Sh10.5 billion in the past 12 months.
“We have this feeling that KPC needs to realise the benefits that will accrue from a listing at the Nairobi Securities Exchange,” stated Mbadi, citing the success of listed companies like Safaricom and KenGen.
He emphasised that an NSE listing would provide KPC with “much-needed liquidity and capital for expansion and diversification into LPG,” particularly as the company pursues regional growth.
Furthermore, it would allow Kenyans to own a stake in the strategically important asset. KPC has ambitious plans for regional expansion, including the development of a trading hub in Mombasa for petroleum products.