National Infrastructure Fund receives Sh103b seed money from sale of KPC
Business
By
Macharia Kamau
| Apr 24, 2026
National Treasury CS John Mbadi (second right) receives a Sh103 billion cheque from the proceeds of Kenya Pipeline Company IPO at the Treasury Building in Nairobi, on April 23, 2026. [Edward Kiplimo, Standard].
The National Infrastructure Fund has received the first seed money of Sh103 billion, the National Treasury has earned from the sale of the 65 per cent stake in the Kenya Pipeline Company (KPC).
The government offloaded its stake through an Initial Public Offering (IPO) which opened on January 19 and closed on February 24, 2026, following a three-day extension while the shares commenced trading at the Nairobi Securities Exchange (NSE) on March 9.
The offer, which achieved a subscription rate of 105.7 per cent, raised Sh112.37 billion exceeding the government's target of Sh106.3 billion. The Privatisation Authority explained that the net proceeds stood at Sh103.45 billion, having refunded the oversubscribed Sh6 billion and paid transaction costs of Sh2.85 billion.
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“The net proceeds, totalling over Sh103 billion, will fund infrastructure development, including road networks and airports. These funds will seed the National Infrastructure Fund (NIF), ensuring it is being ring fenced for transformative public go,” said Irene Wanyoike, a board member at Privatisation Authority, adding that the offer achieved major milestones in Kenya’s capital markets including being the first fully electronic IPO, with all applications submitted digitally.
NIF is a strategic investment vehicle set up by the government to manage and reinvest proceeds from the privatisation of state-owned enterprises. Other than the proceeds from the sale of KPC, Treasury said it would pump another Sh243 billion that it is expecting from sale of a 15 per cent stake in Safaricom to Vodacom.
The state then plans to leverage the money in the kitty to attract over Sh5 trillion from private sector players that will fund mega infrastructure projects.
National Treasury Cabinet Secretary John Mbadi said the Fund was among the innovative ways that the government is seeking to build roads, power plants, railways, airports and other infrastructure “without over relying on the traditional sources of funds which have shrunk and are actually non-existent”.
While speaking in that other forum where I've come from, I've actually mentioned to them the problem with us in Africa, in particular in Kenya, is we are trying to finance 21st century infrastructure using 20th century financing and it can't work
“The NIF shall be our key vehicle for innovatively financing commercially viable infrastructure investments by unlocking large-scale private sector capital to fund national priorities while reducing borrowing and taxation,” said Mbadi, adding that Kenya has been trying “to finance 21st century infrastructure using 20th century financing and it cannot work”.
Mbadi also said the government would continue selling shares in mature government assets.
Following the successful divestiture by the State, the Government of Kenya retains a 35 per cent stake in KPC, while institutional investors hold 41 per cent and East African Community (EAC) investors 21.22 per cent. The bulk of the shareholding by EAC investors was taken up by Uganda National Oil Corporation (Unoc). Other shareholders include retail investors, many of them Kenyans, who now have a stake of 2.56 per cent as well as foreign investors, KPC staff and Oil Marketing Companies.