How State firms were forced to buy Kenya Pipeline shares

Kenya Pipeline Company CEO Joe Sang during the IPO launch.

Photo credit: Pool

The State pressured cash-rich parastatals to buy into the initial public offering of Kenya Pipeline Company (KPC) to avoid the sale being declared invalid after high net worth investors snubbed the deal.

Multiple people familiar with the transaction, including CEOs of parastatals and stockbrokers, reckon that the government used “strong-arm” tactics to coerce the State-owned firms to participate in the IPO.

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