Lilian Nyiva
Nearly 90 percent of the largest shareholders in Kenya Pipeline Company (KPC) Plc are holding their shares through nominee accounts, effectively shielding the identities of the actual beneficial owners from public view, according to recent regulatory filings.The disclosures show that 18 of KPC's top 20 shareholders are registered under nominee accounts, a structure commonly used in capital markets where shares are held by a financial institution or intermediary on behalf of the real investor. While legal and widely used globally, nominee accounts often obscure the identity of the ultimate shareholder.
Only Two Major Shareholders Publicly Identified
Among KPC's top shareholders, only two entities have been publicly identified as beneficial owners:
The Uganda National Oil Company, which holds approximately 31 percent of the company's shares.
The Unclaimed Financial Assets Authority, which owns about 4.7 percent of the shares.
Together, the top 20 shareholders control over 94 percent of KPC's shareholding, with nominee accounts accounting for the majority of that ownership.
KPC IPO Raised Over Sh106 Billion
The revelations come months after KPC's landmark initial public offering (IPO), which raised approximately Sh106.3 billion and achieved a subscription rate of 105.7 percent, making it one of the largest public offerings in Kenya's history. The government sold a 65 percent stake in the company while retaining 35 percent ownership.
The IPO attracted strong demand from local institutional investors and Uganda's state-owned oil company, helping the offer surpass its target despite concerns over valuation and investor participation.
Uganda Emerges as Strategic Investor
Uganda's participation in the IPO was particularly significant. Through UNOC, Uganda secured a substantial stake in KPC and gained strategic influence over the company, including representation on the board and a role in major governance decisions.
The investment reflects Uganda's interest in safeguarding fuel transportation through the KPC network, which plays a critical role in supplying petroleum products across the East African region.
Transparency Questions Emerge
The high concentration of nominee accounts has renewed debate about transparency in ownership disclosure within Kenya's capital markets. While nominee structures are legal and commonly used for portfolio management, privacy, and cross-border investments, governance experts have previously argued that they can make it difficult for the public to identify who ultimately controls strategic national assets.
Kenya has in recent years introduced beneficial ownership regulations aimed at increasing transparency and helping authorities combat tax evasion, money laundering, and illicit financial flows. However, public disclosure requirements for investors using nominee accounts remain limited.
