Kenya Pipeline Company (KPC), the government-owned fuel distributor, has been valued at about Sh120 billion, according to the National Treasury, ahead of a planned listing on the Nairobi Securities Exchange (NSE) in September.

The state intends to dispose of 65 per cent of its shares in the strategic energy firm, reducing its holding to 35 per cent, with projections indicating the sale could bring in roughly Sh100 billion.

“Honourable Members, the valuation of the company based on the last audited accounts puts in about Sh120 billion. We intend to go for an aggressive valuation which will enable the Government fetch the most optimal value,” a disclosure by the National Treasury shows.

The Treasury added that “the projected valuation should incorporate revaluations of assets and the actuals shall be arrived at once the advisors are onboarded.”

The privatisation plan also includes an employee share offer before the listing, giving staff a chance to acquire stakes in the company.

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According to the sessional paper tabled in Parliament, “details on how the proceeds from the privatisation of KPC will be applied, including whether it will be directed to debt reduction, budgetary support and infrastructure development,” are under review.

In outlining the broader fiscal objectives tied to the sale, the Treasury noted, “the National Treasury is currently focusing on liability management and now the focus should be on the domestic debt front to create additional fiscal space in a bid to stimulate the economy and delivering the desired outcomes that include: attracting FDI, Expansion of the revenue base, provision of credit to the private sector, create jobs and managing debt risks.”

KPC operates key fuel storage and transportation infrastructure in towns including Nairobi, Mombasa, Nakuru, and Eldoret, serving as a critical link in the country’s energy supply chain.

If executed as planned, the share sale would mark one of the largest public offerings in Kenya’s recent history, with its proceeds earmarked for both fiscal support and economic stimulus.