Kenya Pipeline Company has revised settlement terms for investors using Irrevocable Bank Guarantees in its initial public offer, extending the final payment deadline to March 6, 2026 and lengthening bank settlement timelines after approval by the Capital Markets Authority.
- •The update appears in a Supplementary Information Memorandum dated February 18, 2026, issued one day before the offer is scheduled to close on February 19.
- •The IPO involves the sale of 11.81 billion ordinary shares, equal to a 65% stake in the state-owned fuel transporter, at an offer price of KSh 9.00 per share.
- •Late-stage supplementary disclosures are commonly used to resolve settlement and documentation issues as transactions move from marketing into execution.
Under the revised terms, the final date for payment under Irrevocable Bank Guarantees for both domestic and international investors moves from March 5 to March 6. In addition, the standard guarantee form now allows guarantor banks up to 48 hours to settle valid payment demands, replacing the earlier 24-hour requirement, with a firm cut-off set at 3:00 p.m. on March 6.
Irrevocable Bank Guarantees are typically used by large domestic institutions, oil marketing companies, pension funds, and cross-border investors that settle after allocation rather than funding applications upfront.
Kenya Pipeline also amended the assignment clause within the bank guarantee. The previous wording allowed the company to assign or transfer rights under the guarantee without consent. The revised clause now requires prior written consent from the guarantor bank before any transfer of rights, tightening contractual certainty for institutions issuing the guarantees.
The company said the revisions relate solely to payment mechanics under the guarantee framework and do not alter the offer price, transaction size, share structure, or allocation categories. Kenya Pipeline added that all other terms and conditions of the IPO remain unchanged.
Extending the settlement window reduces operational and liquidity pressure on guarantor banks as allocation and funding processes begin.
The Kenya Pipeline IPO ranks among the largest transactions on the Nairobi Securities Exchange since the Safaricom listing in 2008. Proceeds from the sale accrue to the National Treasury, which will retain a 35% stake after listing under the government’s broader asset divestiture programme.
