NAIROBI, Kenya— The Kenya Pipeline Company (KPC) is charting a strategic shift aimed at reducing its heavy reliance on petroleum-related revenue, even as fuel demand across the region continues to grow.
Under its 2025–2030 strategic plan, KPC says the petroleum business, which currently accounts for about 95 per cent of its income, will be scaled down to 81 per cent by 2030 as the company expands into alternative revenue streams.
The diversification drive will focus on non-petroleum ventures, notably investments in fibre optic connectivity and liquefied petroleum gas (LPG) infrastructure, positioning the state-owned firm for long-term sustainability beyond fuel transport.
As part of the plan, KPC intends to establish an LPG bulk import, handling and storage facility in Mombasa, strengthening the country’s gas supply chain.
The company is also set to grow its fibre optic cable (FOC) business by linking its network to submarine cables, satellite systems and bulk digital data transportation routes.
In addition, KPC is exploring opportunities in the transportation of natural gas to regional markets, including Tanzania and other East African countries, as part of its broader push into energy logistics.
Despite the pivot, petroleum demand within Kenya and the wider region remains strong.
In the 2024/25 financial year, total fuel demand stood at 13 million cubic metres, with transit markets accounting for 7.5 million cubic metres.
Regional markets served through Kenya include Uganda, South Sudan, Rwanda, eastern Democratic Republic of Congo (DRC) and Burundi, underscoring the country’s role as a key energy corridor.
KPC projects that domestic fuel demand will rise from 5.8 million cubic metres in FY2024/25 to 6.6 million cubic metres by FY2029/30.
At the same time, transit volumes through the Port of Mombasa are expected to grow from 4.1 million cubic metres to 5.0 million cubic metres over the same period.
The company noted that all domestic petroleum products and about 65 per cent of transit imports currently pass through the Port of Mombasa, reinforcing its strategic importance to regional fuel supply.
Uganda remains the largest transit market along the Northern Corridor, accounting for 65 per cent of transit demand as of FY2023/24.
It is followed by eastern DRC (19 per cent), South Sudan (15 per cent) and Rwanda (1 per cent).
KPC says the diversification strategy is designed to future-proof the company while maintaining its central role in supporting Kenya’s energy security and regional trade.
