Uganda has acquired a 20.15% strategic stake in the Kenya Pipeline Company (KPC), marking a significant move to strengthen its energy security and regional cooperation.
The development was confirmed by Minister Ruth Nankabirwa, the Ministry of Energy and Mineral Development, which revealed that through the Uganda National Oil Company (UNOC), Uganda secured the shareholding as part of KPC’s listing on the Nairobi Securities Exchange (NSE).
Under the listing arrangement, 65% of KPC’s issued share capital is being offered to local, regional, and international investors, while the Government of Kenya will retain a 35% stake.
Uganda imports approximately 95% of its petroleum products, equivalent to nearly 2.96 billion litres annually, primarily through Kenya via the port of Mombasa and the KPC pipeline network.
The country’s monthly petroleum demand stands at about 240 million litres, growing at an estimated annual rate of 7%. This makes KPC’s infrastructure central to Uganda’s fuel supply chain, price stability, and broader economic resilience.
“While the majority of Uganda’s imports are routed through Kenya, the country also supplements its supply through the ports of Dar es Salaam and Tanga in Tanzania. This diversified import framework enhances supply resilience and reinforces regional energy cooperation across East Africa,” the minister said.
Under Uganda’s Petroleum Products Supply framework, UNOC is the sole importer of bulk petroleum products for the domestic market. In May 2024, UNOC signed a Transportation and Storage Agreement with KPC to utilize Kenya’s pipeline and storage infrastructure for efficient handling and transportation of fuel imports to western Kenya depots for onward distribution into Uganda.
She said approximately 65% of transit volumes through the KPC system are destined for Uganda, and the country contributes nearly 35% of KPC’s revenues. Officials say this makes participation in the initial public offering both a strategic and commercial imperative.
Uganda’s acquisition reinforces its commitment to strengthening bilateral cooperation with Kenya and advancing regional integration under the East African Community framework.
By taking an equity stake in KPC, Uganda positions itself to play a more direct role in a critical regional energy asset that underpins economic growth, fuel security, and long-term supply stability.
