National Oil station [Photo/Citizen Tv]
The government has carried forward plans to sell part of its stake owed in the oil firm National Oil Corporation.
As a result investors will now have a chance to buy shares in the state corporation after the shares are publicized through an initial public offer (IPO).
According to the Ministry of Energy and Petroleum National Oil will be dual listed on the Nairobi Securites Exchange (NSE) and the London Stock Exchange.
This follows a memorandum of understanding with the London Stock Exchange to have energy companies cross list and raise funds.
Petroleum Principal Secretary Andrew Kamau insists the government intends to keep a majority stake in the oil company but will allow investors to invest so that they can raise capital.
“We needed to raise money for backing rights and listing gives National Oil fund raising options,” Mr Kamau said.
Kamau added that the move will put National Oil on an international platform where they will be able to source funds from a global market at lower costs.