Government plans IPO for key state companies 

Kenya is reforming the capital markets to enhance their contribution to national development, President William Ruto has said.

The President pointed out that the world is witnessing growing potential of equity and debt markets that calls for more strengthening.

He said well-functioning domestic capital markets enhance economic resilience by limiting exposure to volatile capital flows.

“They reduce dependence on external debt and diversify investment opportunities,” he explained.

President Ruto spoke at the Paternoster Square in London during the bell-ringing ceremony at the London Stock Exchange on Wednesday.

The event signaled the start of trading for the day at one of the oldest stock exchanges in the world.

He said Kenya will keep drawing experiences from the London Stock Exchange to make the Nairobi Securities Exchange (NSE) more robust and vibrant.

Reforms, he added, were already in progress underpinned by strategic initiatives.

“These reforms helped NSE emerge as Africa’s top performer in dollar returns in 2024,” the President announced.

President Ruto noted that the Government was also broadening the stock market appeal to both local and international investors.

He explained that key State assets have been earmarked for privatisation through Initial Public Offerings (IPO) at the NSE.

“We are committed to a programme that identifies and prepares a pipeline of key government assets to be privatised through the exchange,” he said.

As part of this initiative, the President announced that the Government will list the Kenya Pipeline Company through an IPO later this year.

“This will offer investors a unique opportunity to deploy capital in one of our most strategic infrastructure enterprises.”

The President was welcomed to the London Stock Exchange by the chief executive officer, Mr David Schwimmer.

Also present were Prime Cabinet Secretary Musalia Mudavadi, Cabinet Secretaries John Mbadi (National Treasury) and Lee Kinyanjui (Investment, Trade and Industry), and outgoing Afrexim Bank President Benedict Oramah.