News and Analysis
October 19, 2026
Hello and welcome to the Money News Roundup Newsletter. Today, we cover state firms’ sale of Kenya Pipeline shares to a private investor and the UK government’s investment in the Quickmart IPO.
The Business Daily has reported its sources indicating that at least eight state-owned entities have sold a combined 24.76% stake in Kenya Pipeline Company (KPC) valued at Ksh42.5 billion to an unidentified foreign investor.
The shares were reportedly sold at Ksh9.02 each, close to the IPO price of Ksh9. The capital gains of Ksh0.02 translates to about Ksh94.2 million, before discounting brokerage fees.
The foreign investor, who bought the shares is yet to be known.
KPC has already announced a dividend of Ksh0.32 per share for the financial year ended June 30th. The new shareholder is expected to benefit from the dividend, as the company's has listed November as the date for the book closure. This would put his dividends at about Ksh1.5 billion.
It's not immediately clear why the state firms have opted to take in a Ksh84 million capital gains and forfeit Ksh1.5 billion in already declared dividends.
The sale comes less than eight months after the state entities purchased shares worth billions of shillings during its IPO.
The government had urged cash-rich parastatals to participate in the KPC IPO after private investors showed limited interest, threatening the sale’s success.
About 13 State-backed entities invested Ksh64.23 billion in the offer, acquiring a combined 38.35% stake in KPC.
While the firms that sold their shares are yet to be known, NSSF invested Ksh38.5 billion, while the Public Servants Pension Scheme purchased shares worth Ksh13 billion.
The other firms that invested in the IPO were the County Workers Pension Fund at Ksh3.6 billion and the Unclaimed Financial Assets Authority at Ksh3.2 billion.
Pension schemes for employees of Kenya Power, Kenya Pipeline and Kenya Ports Authority (KPA) also made significant investments in the offer.
The United Kingdom government has subscribed to shares worth Ksh1.94 billion in Quickmart’s initial public offering (IPO), representing approximately 13% of the Ksh15 billion offer.
Through a statement, the retailer said the investment was made through the Foreign, Commonwealth and Development Office’s MOBILIST programme ahead of the retailer’s planned listing on the NSE.
The International Finance Corporation (IFC), the World Bank’s private sector arm, has also made a conditional commitment to invest up to Ksh1.94 billion, subject to board approval.
Quickmart operates 72 stores across 16 counties and reported revenue of Ksh50.4 billion in 2025
The government is seeking a private investor to complete the Ksh20 billion James Gichuru Junction–Rironi Road and introduce toll charges for motorists.
The Business Daily reports that plans are in place to attract an investor to complete outstanding works valued at Ksh4 billion, including footbridges, road markings and unfinished road sections.
The project was initially valued at Ksh16 billion, with significant financing from the World Bank, but delays pushed costs higher.
Under the proposed public-private partnership, the investor could operate and maintain the road for four to five years, recovering the investment through toll fees before handing it back to the government.
The tolling plan will complement the ongoing Rironi–Mau Summit dual carriageway project, which will also operate as a toll road once completed.
South Africa’s Vodacom Group says it will retain its controlling 55% stake in Safaricom as it appeals a High Court ruling that nullified its acquisition of an additional 20% stake in the Kenyan telecommunications firm.
As reported by the Business Daily, the September 15 ruling declared the government’s sale of a 15% stake for Ksh204.3 billion invalid, citing concealed information about the transaction’s implications for ownership and control.
Vodacom also acquired a 5% stake from Vodafone Group for Ksh68.1 billion.
On October 13, the Court of Appeal declined to determine an application seeking to suspend the ruling, instead fast-tracking the substantive appeal while maintaining the existing status quo.
President William Ruto has announced proposed tax relief measures, including reduced income tax for workers earning below Ksh32,333, scrapping stamp duty on land transactions valued below Ksh1 million and removing the 25% import duty on mobile phones.
As reported by the Star, the proposed stamp duty exemption could save buyers up to Ksh40,000 in urban areas and Ksh20,000 in rural areas on Ksh1 million transactions.
The President also announced plans to expand the national internship programme to 50,000 graduates from January, up from about 10,000. With interns receiving Ksh25,000 monthly, the expanded programme could cost the government at least Ksh15 billion annually.
Foreign investors have withdrawn Ksh17.79 billion from the NSE since January, exceeding the Ksh11.60 billion outflow recorded in 2025.
The Kenyan Wall Street reports that selling pressure intensified in the week ended October 16, with net foreign outflows reaching Ksh1.503 billion, up from Ksh741.92 million the previous week.
The sell-off erased Ksh134.41 billion in market value over three weeks, while market capitalisation fell Ksh74.35 billion in the latest week to Ksh4.036 trillion.
Banking stocks dominated trading, accounting for approximately 71% of equity turnover, led by Equity Group, I&M Holdings and KCB Group.
Safaricom has introduced M-Pesa Jumbe, a feature that allows customers to confirm payments without exposing their full names, phone numbers or account balances.
As reported by Capital Business, the service enables Lipa na M-Pesa and Pochi la Biashara merchants to nominate up to 50 users to receive payment notifications, reducing delays when verifying transactions.
Notifications display a JumbeID, combining the first letters of a customer’s first and last names with the last two digits of their phone number. Merchants can nominate users through the M-PESA menu by dialling *234#
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