NSSF smartly avoided investing in “overvalued” Kenya Pipeline Company

What the report says

Uganda’s National Social Security Fund is being portrayed by The Independent Uganda as having made a prudent call by skipping the Kenya Pipeline Company initial public offer. The article says NSSF has recently expanded its holdings across major companies in Uganda and the wider region, but decided not to buy into KPC because it viewed the offer price as too high.

According to the report, NSSF officials said the share price of 9 Kenyan shillings was not attractive enough for a long-term saver-focused investment, and they pointed to a price-to-earnings ratio they considered elevated. The story also cites outside analysts and Old Mutual Investment Group Uganda, which separately valued KPC below the IPO price and warned of downside risk if the market repriced the stock after listing.

The piece says Uganda later gained a large stake in KPC after negotiations with Kenya, along with board representation and veto powers on certain strategic issues. Ugandan officials defended the move as a way to protect fuel security and influence a company that carries most of Uganda’s petroleum supply. The article adds that KPC’s shares have traded quietly since listing in March 2026, suggesting the pricing concerns were reflected in the market.

More broadly, the report places the episode in the context of NSSF’s shift from heavy reliance on government securities toward more equity investments, a strategy it says has helped boost returns for savers.