Kenya Pipeline Company (KPC) has pledged to distribute 50% of its net profits to shareholders as it prepares for an initial public offering (IPO) on the Nairobi Securities Exchange. This commitment aims to position the state-owned fuel transporter as a high-quality stock offering stable returns. The dividend promise was detailed in filings disclosed to investors ahead of the IPO, which will list the company on the exchange and raise KSh106.31 billion for the government as it plans to sell a 65% stake. KPC stated that the 50% payout will be declared and paid only when sufficient distributable reserves and liquidity are available, while also complying with applicable funding agreements, statutory requirements, and regulatory approvals. This commitment will place the company among Kenya's most generous dividend payers, expected to attract income-seeking investors. However, the payout ratio falls short of its historical allocations to the Treasury as a state-owned enterprise. The company noted that retail investors in Kenya's stock market are primarily profit-driven and "extremely" value firms capable of sustaining growing dividends.
