NAIROBI, Kenya, Aug 12 – Kenya Pipeline Company (KPC) is worth Sh120 billion, government estimates show.
KPC is a fuel distributor with a presence in towns such as Nakuru, Nairobi, Mombasa, and Eldoret, among others.
“Honorable Members, the valuation of the company based on the last audited accounts puts in about Kes 120 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 projected valuation should incorporate re valuations of assets and the actuals shall be arrived at once the advisors are onboarded.”
A sessional paper tabled in Parliament showed that the state plans to divest 65 percent of its stake in the strategic energy utility, reducing its shareholding to 35 percent. The Treasury expects to raise about Sh100 billion from the IPO.
It also plans to offer its employees shares ahead of its planned listing on the Nairobi Securities Exchange (NSE) in September.
“Details on how the proceeds from the privatization of KPC will be applied including whether it will be directed to debt reduction, budgetary support and infrastructure development,” the disclosure continued.
“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.”
