National Treasury is thinking about listing Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange (NSE) through an Initial Public Offering (IPO).
Cabinet Secretary for the National Treasury John Mbadi, has said KPC needs to be listed so as to realize its full potential if listed at the bourse. Mbadi said Safaricom and KenGen are some of the corporates that have reaped benefits after being listed at the NSE.
Last year, KPC presented a cheque worth Ksh 10.5 billion as dividend to the National Treasury.
“We have this feeling that KPC needs to realize the benefits that will accrue from a listing at the Stock Exchange,” the CS said.
“If KPC is listed at the bourse it will expand 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,” he said.
KPC has been considering establishing a trading hub in Mombasa for the receipt, trading and distribution of petroleum products, which will benefit the regional oil and gas industry.
Mbadi said the National Treasury would support plans to wind down the Kenya Petroleum Refinery (KPRL) and integrate it into KPC. He acknowledged the prolonged delay in dissolving KPRL and assuring the public that the exchequer, in collaboration with the Ministry of Energy, would work to ensure a smooth transition within this financial year.
The CS lauded the KPC board and management for a stellar financial performance for the year ended June 2024. KPC has been performing well in its financial report. Between 2023 and 2024, KPC posted a pre-tax profit of KSh 10.1 billion profit which was an increase from the Ksh7.6 billion recorded the prior year.
KPC, National Oil Corporation, New Kenya Cooperative Creameries (NKCC), Kenya Literature Bureau (KLB), and Rivatex East Africa (REAL), among others are some of the companies that the government plans to privatize.
