How State firms were forced to buy Kenya Pipeline shares

The government pressured cash-rich parastatals to buy into the initial public offering of Kenya Pipeline Company (KPC) to prevent the sale from being declared invalid after high net worth investors snubbed the deal. Less than 10% of the Sh103.6 billion worth of shares had been purchased before the offer closed, prompting the State to turn to parastatals and the Ugandan government to save the IPO. Ultimately, Uganda and 13 State-backed pension schemes invested Sh95.8 billion of the required Sh106.3 billion.