How Uganda saved Kenya Pipeline Company shares sale

Key Takeaways

• Uganda's significant purchase of Kenya Pipeline Company (KPC) shares, estimated at Sh32 billion or 20.15% of issued shares, was crucial in ensuring the IPO met its success threshold.
• The Uganda National Oil Company (UNOC) acquired 31% of the IPO shares to secure a 20% ownership in KPC, granting them two board seats and veto power over the CEO.
• Other major buyers included Kenya's National Social Security Fund (NSSF) and the Public Service Superannuation Fund (PSSF), with speculation of state pressure on these entities.
• The KPC IPO successfully crossed the Sh53 billion mark, averting a potential collapse thanks to strong foreign and institutional investor participation.