Kenya Pipeline Company lists on NSE as Uganda formalises 20% stake  

The Government of Uganda has acquired a 20.15 percent shareholding in Kenya Pipeline Company (KPC) following the company’s successful Initial Public Offering (IPO) and listing on the Nairobi Securities Exchange (NSE).

The announcement was made during the bell-ringing ceremony at the NSE on Tuesday, officiated by the President of the Republic of Kenya, Dr Samuel William Ruto, marking the commencement of trading of KPC shares on the exchange.

Speaking on behalf of Uganda’s Minister of Energy and Mineral Development, Ms Ruth Nankabirwa, the Permanent Secretary of the ministry, Eng Irene Bateebe, described the investment as a strategic milestone that strengthens regional energy security and promotes economic integration.

“The acquisition underscores Uganda’s commitment to regional collaboration in the petroleum sector,” Eng Bateebe said. “This is more than a financial transaction; it is a demonstration of how East African countries can work together to develop critical infrastructure for mutual prosperity.”

The IPO raised over 106 billion Kenyan shillings, reflecting strong investor confidence in Kenya’s infrastructure and capital markets. Uganda’s participation in the offering signals the growing strategic partnership between the two countries, particularly in the petroleum sector.

Uganda currently imports nearly 95 percent of its petroleum products through Kenya, amounting to almost 2.96 billion litres annually, making the Kenyan pipeline system a critical component of the country’s fuel supply chain. Under the leadership of President Yoweri Kaguta Museveni, the Uganda National Oil Company (UNOC) was designated as the sole importer of bulk petroleum products for the Ugandan market.

In May 2024, UNOC signed a Transportation and Storage Agreement with KPC to utilise the pipeline infrastructure from the Port of Mombasa to depots in Western Kenya. From these depots, oil marketing companies transport the products into Uganda for distribution.

The Government of Uganda considers the acquisition a sound investment, citing KPC’s strong financial performance. Between 2021 and 2025, the company recorded an average annual revenue growth of eight percent. In 2025 alone, KPC generated 38.6 billion shillings in revenue, with approximately 35 percent of volumes attributed to Ugandan petroleum imports, and recorded a profit after tax of 7.49 billion shillings.

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 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,” she 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 emphasising regional unity, captured in the Swahili proverb: “Umoja ni nguvu, utengano ni udhaifu” — unity is strength, division is weakness.