Kenya’s Capital Markets Authority(CPA) has granted a last-minute extension to the landmark initial public offering (IPO) of state-owned pipeline operator Kenya Pipeline Company, giving investors additional time to participate in what is set to become East Africa’s largest local-currency share sale.
The CPA approved a three-working-day extension, shifting the subscription deadline from Thursday, February 19, 2026, to Tuesday, February 24, 2026, at 5:00 p.m. local time.
Making the announcement, the acting Managing Director of the Privatisation Authority, Dr Janerose Omondi, said “The extension is aimed at ensuring broader participation and will provide investors adequate time to finalise their investment decisions in line with our commitment to inclusivity and transparency,”
The IPO involves the sale of 11.81 billion ordinary shares at KSh 9 per share, representing a 65% stake in the pipeline operator. The government aims to raise KSh 106.3 billion, equivalent to roughly $825 million, while retaining a strategic minority stake of 35%.
Proceeds from the sale are expected to support infrastructure development and reduce reliance on borrowing, aligning with Kenya’s broader strategy to mobilise domestic capital and strengthen fiscal sustainability without increasing taxes.
The offer opened on January 19, 2026, and authorities have positioned it as a milestone transaction designed to deepen Kenya’s capital markets while expanding public ownership of strategic national assets.Slower subscription reflects cautious investor sentiment.
Despite extensive marketing and investor outreach, subscription levels were reportedly below expectations in the days leading up to the original deadline which is attributed to a combination of valuation concerns, tight liquidity conditions, and elevated interest rates, which have made fixed-income investments more attractive relative to equities.
Some investors have questioned whether the KSh 9 offer price fully reflects prevailing market conditions, particularly at a time when regional equity markets are still recovering from macroeconomic volatility.“The extension gives more investors—particularly retail participants an opportunity to join this historic electronic IPO,” the Privatization Authority said in its statement.
All other terms of the offer remain unchanged, including the planned listing on the Nairobi Securities Exchange, scheduled for March 9, 2026. Share allocation results are expected on March 4, 2026.Strategic asset anchors regional energy supply.
The Kenya Pipeline Company operates the country’s core petroleum transportation infrastructure, linking the port of Mombasa to inland depots and extending supply routes to neighbouring countries, including Uganda. Its network plays a central role in ensuring stable fuel distribution across East Africa.
The IPO extension also follows a High Court ruling that dismissed legal challenges to the privatisation process, removing a key regulatory obstacle and allowing the transaction to proceed.
Investors and policymakers will now closely monitor whether the additional subscription window boosts participation and enables the government to achieve its ambitious fundraising target, seen as a critical test of investor confidence in large-scale state divestitures across Africa.
