Kenya’s ongoing privatisation agenda has placed the selling of shares in major state-linked corporations at the centre of public, legal, and economic debate. Two key transactions illustrate this shift: the proposed listing of Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange (NSE) and the planned partial divestiture of the Government’s shareholding in Safaricom PLC.
The Government has proposed offering a majority stake in Kenya Pipeline Company to the public through an Initial Public Offering (IPO) on the NSE, while retaining a minority shareholding. The objective is to raise capital for infrastructure development, reduce the fiscal burden on the State, and deepen Kenya’s capital markets by enabling public participation in ownership of a strategic national asset. While the KPC IPO presents opportunities for transparency and market discipline, it has also attracted scrutiny, including legal challenges questioning valuation, process, and protection of national interests.
Similarly, the Government has announced plans to divest part of its shareholding in Safaricom PLC, Kenya’s largest listed company. The proposal involves selling a portion of the Government’s stake to raise significant revenue for development financing. Debate has arisen over whether the sale should be conducted through the NSE such as via block trading or through a negotiated transaction with an existing strategic investor like Vodacom Group. Stakeholders, including legislators and market regulators, have emphasised the need for transparency, fair valuation, and adherence to capital markets regulations to safeguard public confidence and shareholder interests.
Transactions of this magnitude involve complex legal, regulatory, and commercial considerations. MMS Advocates has advised companies on the transfer and sale of shares in companies in Kenya. Our services include conducting legal due diligence, advising on compliance with the Companies Act, Capital Markets Authority regulations, and NSE rules, as well as drafting and negotiating share sale and transfer agreements.
MMS Advocates also provides strategic advisory services on corporate restructuring, governance adjustments, regulatory approvals, and disclosure obligations arising from public offers, private placements, or strategic share transfers. Post-transaction, the firm assists with updating statutory registers, shareholder communications, and managing any disputes or regulatory issues.
As Kenya continues to pursue privatisation and capital market-led financing, robust legal support remains essential. Properly structured share sales guided by experienced legal counsel ensure compliance, protect stakeholder interests, and enhance investor confidence in Kenya’s evolving corporate and capital markets landscape.