KENYA Pipeline Company managing director Joe Sang has moved
to assure employees that their jobs are safe as the state corporation prepares
for a historic Initial Public Offering slated for March 1, 2026.
Sang said the company is on a strong growth path and is
expected to expand even further once it transitions from a fully state-owned
enterprise to a publicly listed company.
Speaking in an exclusive interview with the Star at KPC headquarters in Nairobi, Sang dismissed fears that privatisation would trigger job losses, saying there is no government indication of staff retrenchment.
“Employees don’t need to worry,” he said.
“There are no indications right from government to do any
redundancy or retrenchment. We actually see this company growing into a bigger
company in the next couple of years. We also see it having the power to employ
more people in the coming years.”
Sang said the government’s plan to list KPC is meant to
unlock greater operational agility and efficiency, and to position the company
for faster regional growth.
IPO PROCESS
Sang said the Privatisation Commission has already issued
notification letters to successful bidders who will handle the IPO process. He
said KPC is now in the mandatory 14- day standstill period before formal
contracts are signed.
“So far they have issued letters of notification of award.
We are now in what you call the standstill period, which is the mandatory 14
days. That expires at the end of this week,” he said.
“Thereafter they will sign the contracts and issue letters
of award.”
The IPO will be handled by a consortium that includes a lead
transaction advisor, reporting accountants, lead brokerage firm, legal
advisors, a public relations agency, an advertising firm and receiving banks.
KPC’s listing date was recently published in local
newspapers, with the commission proposing March 1, 2026 as the target. Sang
said the team expects to complete key preparatory steps within four months.
He encouraged Kenyans to buy shares once the offer opens,
saying the firm is financially strong and has consistently delivered growth.
“This is a very good company. All the fundamentals are
strong in terms of business performance,” he said.
“We have been growing this business year in, year out. We
have been diligently paying dividends to our shareholder, which is the National
Treasury.”
KPC’s profit before tax has risen sharply over the last
three financial cycles.
“When I came in, the profit before tax was at Sh6.1 billion.
The year that followed, we grew it to Sh7.5 billion. The next year we grew it
to Sh10 billion. The year that ended in June this year, we are now at Sh16.1
billion,” Sang said.
“We have grown from Sh6 billion to Sh16 billion using the
same employees.”
REGIONAL EXPANSION
He said the firm is also proud of its clean audit status.
“Pre-2022, the audits were qualified. But in the last three
years, we have had unqualified audits. It’s a testimony of every corner of the
business delivering.”
Sang dismissed concerns that KPC’s regional operations could
slow down after the firm goes public.
Instead, he said privatisation will accelerate expansion
into markets such as Uganda, Tanzania, Rwanda and beyond.
“It will actually enhance,” he said. “There are so many
things we want to do, but at times the speed of government is not the speed of
private sector. Once your board sits and approves a budget, you can go to
market the next day.”
Today, KPC requires approvals from multiple institutions
including its board, the parent ministry and the National Treasury.
Sang believes the company’s entry into the private market
will significantly reduce bureaucracy and enable faster decision-making.
“I see us moving a lot more quickly in terms of increasing
our footprint outside Kenya than it is today,” he said.
KPC already serves the region through the Kenya-Uganda fuel
corridor and partnerships with neighbouring states.
Market analysts have long noted that East Africa’s growing
fuel demand, driven by industrialisation and infrastructure development, offers
a solid growth outlook for the company.
MORENDAT INSTITUTE
Sang also highlighted the transformation of the Morendat
Institute of Oil & Gas as one of the company’s biggest recent achievements.
The institution, which is based in Naivasha, was last year
formally recognised as a national polytechnic, enabling it to offer accredited
technical and vocational programmes.
“MIOG is a capacity building school for the region,” Sang
said. “It was considered as a national polytechnic and therefore it offers
accredited courses. We are moving away from being just a school.”
The institute focuses on specialised training in welding,
fire safety and other petroleum-related skill areas.
KPC has also entered into partnerships with county
governments to train students across the country and neighbouring states.
“We are now training students in Kenya and beyond Kenya,” he
added.
Beyond oil and gas, the institute is expanding into
hospitality training.
“On November 28, we are partnering with BOMA to offer
hospitality courses,” he said.
“We want to be known to be a capacity building polytechnic
offering the highest accredited courses in the region.”
The MD said the diversification of training reflects KPC’s
broader goal of building a skilled, competitive workforce for the energy and
hospitality sectors.
LOOKING AHEAD
Sang believes KPC is entering its strongest phase in
decades, citing improved financial performance, clean audits, efficiency gains
and a highly productive workforce.
He credits the transformation to a more innovative team that
is “thinking outside the box” and pursuing new regional markets.
“We have a great team that is delivering. Every corner of
the business is delivering,” he said.
With staff assured of job security and the IPO process
firmly underway, Sang expects the company’s next chapter to be marked by even
faster growth and expanded regional presence.
“KPC is a channel that can only grow,” he said. “The future
is bright, and we are ready for it.”
