Ruto defends Sh42bn Kenya Pipeline share transfer, says deal signals investor confidence

NAIROBI, Kenya, Oct 20 – President William Ruto has defended the transfer of 4.5 billion shares in Kenya Pipeline Company (KPC) from public entities to private investors, saying the transaction reflects growing confidence in Kenya’s capital markets and will help mobilize funds for strategic infrastructure.

Speaking during the Mashujaa Day celebrations in Eldoret, Uasin Gishu County, on Tuesday, Ruto said the transaction marked another step in the government’s efforts to attract private capital into key sectors of the economy.

“Just yesterday, in a demonstration of confidence in our growing capital markets, private investors acquired a 25 percent stake in Kenya Pipeline from public entities, marking another step in mobilizing private capital for strategic infrastructure,” Ruto said.

“These developments will strengthen our energy sector, attract investments and create new opportunities for the Kenyan economy.”

The President’s remarks come amid market scrutiny over the transfer of 4.5 billion KPC shares valued at approximately Sh42 billion, with the identities of the investors involved yet to be publicly disclosed.

The transaction, which represents about a quarter of KPC’s issued shares, was executed through the Nairobi Securities Exchange (NSE) block trading platform, which facilitates large-volume share transfers.

According to market information, Rock Investment Bank handled the sale while KCB Capital represented the purchasing client.

The identities of the ultimate buyers and sellers were not immediately disclosed in the reported transaction details.

KPC began trading on the NSE on March 9 following the government-backed initial public offering (IPO), which raised approximately Sh112 billion against a target of Sh106 billion.

The government presented the listing as part of efforts to broaden public participation in strategic State-linked enterprises and deepen Kenya’s capital markets.

The latest transfer also comes amid wider efforts to increase private-sector participation in infrastructure financing as the government seeks alternative sources of capital for economic development.

However, the transaction raises questions about changes in KPC’s ownership structure, particularly given the scale of the stake transferred and the lack of publicly identified beneficial owners in the reported market information.

Ruto did not identify the investors involved in his remarks or provide further details on the terms of the transfer.