IPO deal raises doubts on government's privatisation plans

The  Kenya Pipeline Company (KPC) initial public offering (IPO) may have raked in the billions the government had targeted from its most pricey state-owned enterprise (SOE). However, it is highly doubtful if the IPO has achieved the broader macroeconomic and legitimacy outcomes that such an exercise should bring to the government.

For context, the IPO, which was running concurrently with the private placement divestiture undertaking for government-owned shares in Safaricom, is the first of many other SOEs lined up for sale to the public or strategic investors. Thus, the success or failure of the two programmes would have far-reaching impacts on any future offering for the remaining enterprises on sale. Furthermore, of all the targeted SOEs, these two are the finest in the state.