The Government of Uganda has acquired a 20.15% shareholding in Kenya Pipeline Company (KPC) following the company’s successful Initial Public Offering (IPO) and listing on the Nairobi Securities Exchange.
The announcement was made during the bell ringing ceremony at the Nairobi Securities Exchange, officiated by the President of the Republic of Kenya , His Excellency Samuel William Ruto, marking the commencement of trading of KPC shares on the exchange.
Speaking at the ceremony on behalf of Uganda’s Minister of Energy and Mineral Development, Hon.Dr. Canon Ruth Nankabirwa, the Permanent Secretary of the Ministry of Energy, and Mineral Development , Eng Irene Bateebe described the investment as a strategic milestone that strengthens regional energy security and economic integration.
The IPO raised over Kenya Shillings 106 billion, demonstrating strong investor confidence in Kenya’s infrastructure and capital markets.
Uganda’s participation in the offering reflects the growing strategic partnership between Uganda and Kenya, particularly in the petroleum sector.
Uganda currently imports approximately 95 percent of its petroleum products through Kenya, amounting to nearly 2.96 billion litres annually, making the Kenyan pipeline system a critical component of Uganda’s fuel supply chain.
The Permanent Secretary noted that under the leadership of His Excellency Yoweri Kaguta Museveni, the Uganda National Oil Company was designated as the sole importer of bulk petroleum products destined for the Ugandan market.
In May 2024, UNOC signed a Transportation and Storage Agreement with Kenya Pipeline Company to utilize the pipeline infrastructure from the Port of Mombasa to depots in Western Kenya. From there, oil marketing companies transport the products into Uganda for distribution.
The Government of Uganda considers the acquisition a sound investment, given KPC’s strong financial performance. Between 2021 and 2025, the company recorded an average annual revenue growth of 8 percent. In 2025 alone, KPC generated KSh 38.6 billion in revenue, with approximately 35 percent of volumes attributed to Ugandan petroleum imports, and recorded a profit after tax of KSh 7.49 billion.
Officials said the investment reflects the vision of the East African Community to deepen regional integration through shared infrastructure and economic collaboration.
By opening ownership of critical infrastructure to regional partners such as Uganda and Rwanda, Kenya has set a precedent for strengthening economic resilience, reducing supply chain vulnerabilities, and promoting shared prosperity across East Africa.
Eng. Irene Bateebe also commended the leadership of the Kenyan government and the technical teams involved in facilitating the transaction, noting that the milestone demonstrates the power of regional collaboration in advancing Africa’s economic transformation.
“As we ring this bell today, we are marking more than a financial transaction,” the Permanent Secretary said. “We are ushering in a new era of deeper East African integration and demonstrating how African countries can work together to develop strategic infrastructure for mutual prosperity.”
The ceremony concluded with a message emphasizing regional unity, captured in the Swahili proverb: “Umoja ni nguvu, utengano ni udhaifu” — unity is strength, division is weakness.
