Kenya Pipeline's Profit Boom Sparks IPO Hype

Hi there 👋🏿

It's Brian from The Kenyan Wall Street 

In today's edition, we break down the financial results of Kenya's biggest bank—KCB—and Sanlam Insurance (Both listed at the NSE). But first, we highlight the gains made by Kenya Pipeline Company (KPC) ahead of its anticipated listing.

Kenya Pipeline's Profit Boom Sparks IPO Hype

Financial Performance:

Kenya Pipeline Company (KPC) reported a 32% increase in profit before tax to KES 10 billion for the financial year ending June 2024, driven by a 15% revenue growth to KES 35.4 billion.

The company's total fuel throughput rose by 6% to 9.1 million cubic meters, with export volumes surging by 12%. KPC also finalized the acquisition of Kenya Petroleum Refineries Limited (KPRL) to strengthen its regional position in oil and gas storage and transportation. Here are more financial details»»»»

IPO Expectation 

The Kenyan government is advancing plans to list KPC on the Nairobi Securities Exchange (NSE) as part of its privatization agenda, backed by the Privatization Act 2023. Despite previous delays due to legal and political hurdles, there is renewed momentum, especially with opposition leaders now cooperating with the administration. A successful IPO would boost the NSE by increasing market capitalization and attracting investors to a profitable, regionally dominant state entity…

Today's Poll

Yesterday's Poll Results

Do you think the unionization of gig workers in outsourcing firms would help address their plight? 

🟩🟩🟩🟩🟩🟩 Yes (66.67%)

🟨🟨🟨⬜️⬜️⬜️ No (33.33%)

KCB Profit Surges, Assets and Loans Drop

‘The strong performance illustrates our resolve over the past 3 years to build an organisation for the future’ - CEO, Paul Russo

KCB Group’s net profit surged 64.9% to KSh 61.8 billion in 2024, as total operating income grew 24% to KSh 204.87 billion, driven by higher interest and non-funded income.

🔺Net interest income rose 27.9% to KSh 137.3 billion, while forex income surged 62%, boosting non-funded income by 33.9% to KSh 67.5 billion. 🔻Total assets dropped 9.6% to KSh 1.96 trillion, while loans to customers fell 9.6% to KSh 990.4 billion.

🔻Gross Non-Performing Loans (NPLs) increased 8.4% to KSh 225.7 billion, pushing the NPL ratio to 19.2%. 🔺Loan loss provisions decreased 11% to KSh 29.9 billion.

🔺Earnings per share rose to KSh 19.00, with total dividends set at KSh 3.00 per share, amounting to KSh 9.6 billion.

More on KCB’s financial performance »»»»»

Sanlam Bounces Back, But No Dividends

‘The increase in earnings was due to improved underwriting profit and improved loss ratios’ - Sanlam

Sanlam Kenya’s share price rose 11.4% after posting its first profit in five years, reporting KSh 1.05 billion in 2024. The turnaround was driven by higher investment income and improved underwriting profits. Insurance revenue grew, while operating expenses dropped significantly. However, finance and tax costs increased due to high interest rates. Despite the strong performance, Sanlam did not declare dividends. The stock closed at KSh 8.00, marking a 62% gain year-to-date. Read more details»»»»»

Expired Fertilizer Fiasco: Supplier Takes Hit

‘The government and Kenyan public will not incur any loss or costs’ - Agriculture CS, Mutahi Kagwe

Kenya’s Agriculture Ministry just gave expired fertilizer the boot—27,518 bags of it, to be exact. Turns out, FineTech Edge Ltd is on the hook for the loss since they technically still owned the stock. The National Cereals and Produce Board (NCPB) flagged the issue when they noticed the fertilizer's shelf life was barely a month long. KEBS will now oversee its safe destruction, because, well, no one wants expired fertilizer in their fields. Meanwhile, the government is advising suppliers to get insurance—because this kind of loss sucks. More details here…

Editor's Picks

• Metropolitan Sacco Penalised for Clinging to Member’s Deposit

The Cooperatives Tribunal has ordered struggling Metropolitan SACCO to refund a member’s Ksh 351,258.71 deposit plus costs and interest after failing to prove why it had not done it despite her withdrawal notice. Continue reading»»»»»

• Kenyan Motorists Face Higher Fuel Prices as EPRA Raises Margins

Kenyan motorists will pay higher fuel prices as the Energy and Petroleum Regulatory Authority (EPRA) is set to raise margins for oil marketing firms, transporters, and retailers. Continue reading»»»»»

Any company, any size, and in any industry can enter for a chance to be recognized by The Kenyan Wall Street’s Best Places to Work 2025 awards. The survey completion for the 2025 Awards is required by midnight on Friday, 26th September. Participate here»»»»»

More Stories :

• Geopolitics. An extraordinary summit of IGAD Heads of State and Government on South Sudan wants the government of Africa’s newest nation to release detained officials as part of the solutions to stabilize the country.

• Taxation. Eighteen people have been arrested in Nairobi in a crackdown on a ‘cargo dumping’ tax evasion scheme where goods destined to Democratic Republic of Congo (DRC) were diverted to Eastleigh.

• Energy. Ola Energy, one of the largest oil marketing companies (OMCs) in the country, has announced that it is currently restructuring its Kenya operations, which will including declaring staff redundancies and enhancing sales.

• Labour. The Kenya Union of Gig Workers (KUGWO) is calling for an urgent investigation into the death of a Nigerian content moderator at Teleperformance Kenya—alleging workplace mistreatment.

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