Unidentified investors transferred 4.5 billion Kenya Pipeline Company shares, valued at KSh42.5 billion, through the Nairobi Securities Exchange block board.

The block trade represents 24.76 per cent of KPC’s issued shares, staying just below the 25 per cent threshold that would trigger Capital Markets Authority approval.

The NSE disclosed that the shares closed at KSh9.02 each, a rise of 0.22 per cent on the day of the transaction.

Rock Investment Bank acted as the broker for the sale and KCB Capital fronted the client that purchased the shares, according to market information.

The transaction has highlighted the involvement of the government of Uganda, Kenya’s National Social Security Fund and the Public Servants Pension Scheme, the only shareholders capable of moving up to 4.8 billion shares via a block trade.

Under NSE equity trading rules, block trades must meet minimum size and disclosure requirements, and no single trade may exceed 24.99 per cent of a company’s total shares to avoid unintended takeover bids.

President William Ruto defended the transfer at the Mashujaa Day celebrations in Eldoret, saying the deal shows confidence in Kenya’s capital markets and will help mobilise private capital for strategic infrastructure.

Ruto stated that private investors acquired a 25 per cent stake in KPC from public entities, describing the move as another step in attracting private funding for key sectors.

The president did not disclose the identities of the buyers or sellers, and the market report noted that the ultimate investors remain unidentified.

KPC was listed on the NSE on March 9 after an IPO that raised KSh112 billion, exceeding its target of KSh106 billion, with major participation from the NSSF, Uganda and other state-backed pension schemes.

During the IPO, 18 of the top 20 shareholders were held in nominee accounts, masking the true owners, and about 90 per cent of the top owners bought through proxies.

Retail investors bought KSh4.1 billion of shares against an allocation of KSh21.2 billion, while foreign investors purchased only KSh32.7 million against a target of KSh21.2 billion.

Oil marketers acquired KSh22.9 million, representing 0.14 per cent of the KSh15.9 billion allocated to dealers.

The block trade follows other large NSE transactions, such as the KSh204.3 billion sale of a 15 per cent Safaricom stake to Vodacom, which was the biggest single deal on the exchange.