Kenyans have been invited to participate in the Kenya Pipeline Company (KPC) Initial Public Offering as the listing opens at the Nairobi Securities Exchange (NSE).
The Kenya Pipeline IPO has been priced at Ksh9.00 per offer share, with a par value of Ksh0.02.
The company has an authorised share capital of Ksh387,391,600 and 18,173,299,000 issued ordinary shares, with 11,812,644,350 shares being made available to investors through the offer.
Financial disclosures also show strong performance indicators, including a post–share split Dividend Per Share of Ksh0.347 and Earnings Per Share of Ksh0.4122 for the twelve months ended June 30, 2025.
Against this backdrop, many first-time investors are seeking clarity on what the stock market is, why investing in shares matters, and the steps required to buy shares on the NSE.
What is the stock market?
The stock market is a regulated marketplace where shares of publicly listed companies are bought and sold.
In Kenya, this function is carried out by the Nairobi Securities Exchange.
When a company lists on the NSE, either through an Initial Public Offering or a secondary listing, it allows members of the public to buy shares and become part-owners of that company.
Prices of shares on the stock market are influenced by factors such as company performance, earnings, dividends, economic conditions, and investor demand.
For example, offer documents like that of Kenya Pipeline provide details on earnings, dividends, and valuation metrics such as EBITDA and EV/EBITDA multiples, which help investors assess a company’s financial health and growth prospects.
Why invest in stocks?
Investing in stocks allows individuals to grow their wealth over time through capital appreciation and dividends.
When a company performs well, its share price may rise, enabling investors to sell at a profit.
In addition, profitable companies may distribute part of their earnings to shareholders as dividends, providing a regular income stream.
Stocks also offer an opportunity to participate directly in the ownership of major companies and strategic assets.
In the case of large infrastructure firms such as Kenya Pipeline, investors gain exposure to stable, revenue-generating businesses that play a central role in the economy.
How to buy shares on NSE
To buy shares on the Nairobi Securities Exchange, an investor must first open a Central Depository System (CDS) account through a licensed stockbroker or investment bank.
This account is used to hold shares electronically and track ownership.
Once the CDS account is active, the investor can place a buy order through their stockbroker.
For IPOs, such as the Kenya Pipeline offer, investors apply for shares during the offer period using the prescribed application channels, including banks, mobile platforms, or online portals approved by the NSE and the issuing company.
For already listed shares, investors instruct their broker on the number of shares they wish to buy and the price they are willing to pay.
The broker then executes the trade on the NSE. After settlement, the shares are credited to the investor’s CDS account.
