NAIROBI, Kenya- Uganda has formally secured a strategic stake in the Kenya Pipeline Company (KPC) as part of its ongoing privatisation through an Initial Public Offering (IPO), marking a significant milestone in regional energy cooperation and economic integration.
Uganda’s Participation in KPC’s IPO
The Government of Uganda, through the Uganda National Oil Company (UNOC), has acquired shares in KPC during the IPO, which is selling up to 65 percent of the company’s equity to private and institutional investors to raise about Sh106.3 billion (approx. USD 825 million).
A high-level Ugandan delegation led by Energy Minister Ruth Nankabirwa Ssentamu signed the agreement in Nairobi to formalise Kampala’s participation, signalling Uganda’s shift from a passive fuel importer to an active stakeholder in the Northern Corridor’s energy infrastructure.
In Nairobi, I signed on behalf of @GovUganda to formalize our participation in the IPO of the Kenya Pipeline Company (KPC) @kenyapipeline . Through the Uganda National Oil Company @UNOC_UG , Uganda will secure a strategic stake in this critical regional energy asset.
Why the Stake Matters
- Energy Security: As a landlocked country, Uganda relies heavily on the Kenyan pipeline network, which transports more than 90 % of its petroleum imports from the Port of Mombasa. Owning part of KPC helps safeguard fuel supply and stabilise pricing.
- Regional Integration: The shareholding strengthens cooperation under the East African Community (EAC) framework, aligning strategic infrastructure interests between Uganda and Kenya.
- Governance Rights: Under the updated IPO structure, Uganda is entitled to appoint at least two directors to the KPC board — provided it holds a minimum 20 % shareholding — giving Kampala formal influence over key operational decisions.
Broader Economic Context
The IPO represents one of the largest public offerings in Kenya’s capital markets, designed to mobilise both domestic and regional capital while retaining a 35 percent strategic state holding after divestiture.
Kenya’s government has extended the IPO deadline to 24 February 2026 to ensure broader investor participation.
Analysts say Uganda’s stake could deepen cross-border fuel logistics cooperation and reduce supply disruptions.
It also reflects Nairobi’s growing emphasis on regional investors in strategic infrastructure projects.
However, some market watchers have raised valuation concerns over pricing and governance rights, sparking debate among investors.
