Nairobi — Some investors in the energy sector received far smaller allocations than expected in the Kenya Pipeline Company (KPC) Initial Public Offering (IPO), despite being offered significant shares in the state-owned firm.

Analytical reports show that foreign investors, who had been offered 20 percent of the company, ended up acquiring only 0.02 percent of the shares. Meanwhile, market investors took up just 0.0141 percent out of a 15 percent allocation.

The low uptake by foreign and market investors resulted in local institutional investors receiving a larger share of the company.

The National Social Security Fund Kenya (NSSF) emerged as the largest beneficiary, acquiring 41 percent of the company, more than double the 20 percent stake initially offered to the fund.

The Government of Kenya retained 35 percent of the company, matching the stake it had originally planned to hold.

Investors from the East African Community, including participants from Rwanda and Uganda, acquired 21.2 percent of the shares, slightly above the 20 percent initially allocated to the regional bloc.

Meanwhile, local retail investors subscribed to 2.56 percent of the company, significantly below the 20 percent stake set aside for them, while KPC employees acquired just 0.06 percent compared to the 5 percent allocation reserved for staff.