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.
The milestone was marked during an official bell-ringing ceremony at the Nairobi Securities Exchange, presided over by William Ruto, President of Kenya, signaling the start of public trading of KPC shares.
Speaking at the ceremony on behalf of Ruth Nankabirwa, Uganda’s Minister of Energy and Mineral Development, the Permanent Secretary in the ministry, Irene Bateebe, described the investment as a strategic step toward strengthening regional energy security and economic integration between Uganda and Kenya.
“The investment represents a significant milestone that reinforces cooperation in the petroleum sector and ensures greater stability in regional energy supply chains,” Bateebe said.
Strong Investor Confidence
KPC’s IPO raised more than Kenya Shillings 106 billion, reflecting strong investor confidence in Kenya’s infrastructure sector and capital markets.
Uganda’s participation in the share offering highlights the deepening economic partnership between the two East African nations, particularly in energy and petroleum logistics.
Currently, Uganda imports about 95 percent of its petroleum products through Kenya, equivalent to nearly 2.96 billion litres annually, making Kenya’s pipeline infrastructure critical to Uganda’s fuel supply chain.
Under the leadership of Yoweri Museveni, President of Uganda, the Uganda National Oil Company (UNOC) was designated as the sole importer of bulk petroleum products destined for the Ugandan market.
Strategic Infrastructure Partnership
In May 2024, UNOC signed a Transportation and Storage Agreement with Kenya Pipeline Company to utilise pipeline infrastructure stretching from the Port of Mombasa to storage depots in western Kenya. From these depots, oil marketing companies transport petroleum products into Uganda for local distribution.
Officials say the investment is financially sound given KPC’s strong performance in recent years. 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 around 35 percent of the transported volumes linked to Ugandan petroleum imports. The company also reported profit after tax of KSh 7.49 billion.
Advancing Regional Integration
Government officials said the investment reflects the broader vision of the East African Community (EAC) to deepen regional integration through shared infrastructure and economic collaboration.
By opening ownership of strategic 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.
Bateebe also commended the leadership of the Kenyan government and the technical teams that facilitated the transaction, noting that the development highlights the potential of regional partnerships in driving 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 of regional unity captured in the Swahili proverb “Umoja ni nguvu, utengano ni udhaifu” — unity is strength, division is weakness.
