Unidentified investors traded 4.5bn shares in Kenya Pipeline Company (NSE: KPC), worth KES42.5bn ($327mn), in a single transaction equivalent to 24.76% of the company’s issued share capital, Business Daily reported on October 19.
The transaction, executed through the Nairobi Securities Exchange (NSE), represents a major ownership transfer in the petroleum pipeline operator, which listed in March. The identities of both the buyer and seller remain undisclosed, raising questions about the composition of its shareholder base.
The shares were sold through Rock Investment Bank to a client represented by KCB Investment Bank, formerly KCB Capital and a subsidiary of KCB Group (NSE: KCB), Business Daily reported, citing market disclosures and information obtained from brokers.
The block, 24.76% of KPC’s 18.17bn issued shares, stayed just below the 25% threshold above which the transaction would have required Capital Markets Authority approval. Whether takeover regulations apply to the buyer depends partly on its existing holdings and any parties acting in concert.
Attention has focused on Kenya’s National Social Security Fund (NSSF), Uganda and the Public Service Superannuation Scheme, among the company’s largest institutional shareholders. However, there has been no confirmation that any of these investors participated in the transaction.
The deal highlights the limited transparency surrounding Kenya Pipeline’s beneficial ownership. Disclosures reported in June showed that 18 of the company’s 20 largest registered shareholders held shares through nominee accounts, obscuring the identities of the underlying investors.
Kenya Pipeline’s initial public offering (IPO), whose results were announced in March, attracted KES112.37bn in subscriptions for KES106.31bn of shares, sold at KES9 each. State-backed investors and pension funds accounted for most subscriptions.
The Kenyan government retained a 35% stake following the sale, while NSSF held approximately 22.2% and Uganda National Oil Company 20.15%. Uganda had planned to fund its purchase with part of a proposed $2bn loan backed by commodity trader Vitol.
KPC shares closed at KES9.02 on October 19, up 0.22% and just above their KES9 IPO price. However, this was the regular-market closing price, not a confirmed execution price for the separately negotiated block trade. Dividing the reported KES42.5bn transaction value by 4.5bn shares implies approximately KES9.44 per share, a 4.7% premium to the closing price. The reported totals are rounded, and the exact block-trade execution price has not been independently confirmed.
Kenya Pipeline operates the country’s principal petroleum transport and storage infrastructure, which also serves neighbouring East African markets.
The transaction follows the company’s October 14 announcement of a 13.08% increase in annual net profit to KES11.58bn for the financial year ended June 2026, alongside a proposed dividend of KES0.32 per share, about KES5.8bn.