Standard Investment Bank (SIB) Research has placed Kenya Pipeline Company’s (KPC) valuation at roughly KSh 102 billion in anticipation of its proposed listing on the Nairobi Securities Exchange (NSE) by March 2026.
Using a 1.2× price-to-book ratio, SIB’s assessment positions KPC among Kenya’s most valuable state-owned enterprises. The government plans to offload up to 65 percent of its ownership while retaining at least 35 percent.
According to the SIB report, KPC ended the 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, reflecting a 7.7 percent return on equity. The firm had KSh 6.5 billion in cash reserves and operates a 1,342-kilometre pipeline network with 884,000 cubic metres of storage capacity across depots in Mombasa, Nairobi, Nakuru, Eldoret, and Kisumu, as well as aviation fuel systems at Jomo Kenyatta and Moi International Airports.
If listed at the projected value, KPC would become the ninth most valuable company on the NSE, joining an elite list of firms valued above KSh 100 billion, including:
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Safaricom – KSh 1.1 trillion
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Equity Group – KSh 226.4 billion
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KCB Group – KSh 185.6 billion
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EABL – KSh 169.2 billion
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NCBA Group – KSh 150.3 billion
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Absa – KSh 121.7 billion
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Co-operative Bank – KSh 117.3 billion
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Standard Chartered Bank Kenya – KSh 107.9 billion
The KPC listing would be the first major state privatisation since Safaricom’s 2008 IPO. The government has already invited transaction adviser proposals, with submissions due by 21 October 2025.
The process will be overseen by the Privatization Commission under close parliamentary oversight and new transparency requirements. The Office of the Auditor-General must audit the deal and present a post-transaction report within six months of completion.
SIB attributes KPC’s strong valuation to its dominance in petroleum transportation and storage, consistent cash flow, and solid financial footing. The brokerage further suggests that a decline in interest rates and renewed investor interest in infrastructure assets could push the company’s fair value even higher.
If finalised within schedule, KPC’s IPO will serve as a major test of Kenya’s updated privatisation framework and could set a precedent for future state listings. It is also expected to boost market liquidity, draw in institutional investors, and expand the NSE’s exposure to key infrastructure sectors.
