The Kenya Pipeline Company (KPC), a State corporation, transports refined petroleum products from Mombasa to inland Kenya and regional markets, notably Uganda. As of 20 February 2026, it is undertaking an Initial Public Offering (IPO) to raise about KSh 106.3 billion by selling 65 per cent of its shares at KSh 9 per share. The offer period has been extended to 24 February 2026 following weaker-than-expected subscription levels, while the High Court has dismissed legal challenges, clearing the way for a March 2026 listing. 

Despite KPC’s near-monopoly status and historically strong profitability, investor sentiment remains cautious. Some analysts estimate fair value at around KSh 4.61 per share, indicating potential downside risk compared to the offer price. The planned reduction of the dividend payout ratio from about 94.5 per cent to 50 per cent to finance expansion could also discourage income-focused investors. 

Legal and contingent liabilities contribute to concerns, including pending claims of KSh 5.75 billion and lawsuits related to compensation and environmental issues connected to previous pipeline leaks. Operational risks – such as vandalism, challenges in project execution, labour disruptions, and historical underinvestment in capital – further complicate the transition into a capital-intensive growth phase. 

While KPC offers long-term infrastructure exposure tied to regional fuel demand, valuation, legal overhangs, and execution risks warrant careful due diligence.