The government is exploring possibilities of listing the Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange through a public offer.
Speaking when he received an interim dividend cheque amounting to Ksh 3 billion, National Treasury and Economic Planning Cabinet Secretary John Mbadi said the firms stands to benefit from listing as part of its growth strategy.
“Listing will be a good idea especially as KPC expands into the region because it will provide much-needed liquidity and capital for expansion and diversification into LPG, Kenyans will have a chance to own a piece of KPC,” said Mbadi.
The dividend payment brings the total dividends paid by KPC to Treasury in the last 12 months, to Ksh 10.5 billion.
The company is further planning to establish a trading hub for receipt, trading and distribution of petroleum and petroleum products in Mombasa to boost regional oil and gas industry as part of its growth and diversification strategy.
“Today, as I receive this dividends cheque of KES 3Billion from the KPC Board, I am reminded of the critical role State corporations play in driving our economic growth and supporting national development goals. I would like to emphasize that such achievements must be anchored on robust corporate governance structures,” added Mbadi.
According to KPC, it has paid a total of Ksh S63 billion in tax and dividends over the last 10 years. In full year 2023/24, KPC posted a Ksh 10.1 billion in gross profit which is an increase from the Ksh 7.6 billion recorded the previous year.
KPC Chairperson Faith Boinet added that the strong financial performance is anchored on efficient operations and diversification into new revenue streams such as Fiber Optic Cables (FOC) and LPG.
“KPC remains steadfast in its commitment to regional competitiveness. We are proud to hold a 90pc stake in fuel transportation to Uganda and are on the brink of securing a similar share in Rwanda. This demonstrates our strategic efforts to cement our leadership in the regional energy and logistics sector,” she said.
Treasury says it also supports plans to wind down Kenya Petroleum Refinery (KPRL) and the onboarding of it into KPC.
