Kenya Pipeline Company (KPC) is weighing the issuance of infrastructure bonds and bonus shares as ways to protect its cash reserves for upcoming capital projects.
The utility ended the financial year to June 2026 with KSh20.5 billion in cash. It has declared a dividend that will reduce that amount, with figures reported as about KSh6.0 billion and, separately, a proposed payout of KSh5.9 billion based on a KSh0.32 per-share dividend.
Managing Director Pius Mwendwa said the cash position is healthy and can meet obligations. He added that the dividend will lower the cash available for investment, prompting the search for alternatives such as debt financing, project financing, infrastructure bonds and bonus-share issuance.
Mwendwa explained that a bonus-share issue would convert retained earnings into paid-up equity, leaving cash on the balance sheet while increasing share capital.
He noted that a single pipeline project could cost between KSh60.0 billion and KSh70.0 billion, and that the last major project, Line 5, cost upwards of KSh50.0 billion and was completed eight years ago.
KPC typically finances about 30 per cent of large projects through equity and the remaining 70 per cent through debt, a mix the company intends to continue.
In the twelve months to June 2026, KPC’s net earnings rose 13.1 per cent to KSh11.58 billion, total revenue grew 8.8 per cent to KSh42.98 billion and total assets increased 6.15 per cent to KSh149.27 billion.
