Uganda has announced a plan to acquire 20.15 percent shareholding in the Kenya Pipeline Company (KPC) for an estimated $255.4 million (KES33 billion) in the just concluded initial public offering of the utility which closed on Tuesday.

The ownership, which is under consideration in the just concluded KPC initial public offering, will be undertaken under Uganda National Oil Company (UNOC).

Speaking to the media in Uganda, the country's minister for energy and mineral development said UNOC's investment in KPC is vital given the country's heavy reliance on Kenya for its fuel supplies. 

At the moment, Kenya accounts for over 95 percent of the fuel products shipped to Uganda, roughly 2.96 billion liters per year via the KPC infrastructure. Neighbouring Tanzania accounts for the balance of Uganda's fuel supplies.

According to Ruth Nankabirwa, Uganda's minister of energy when the KPC was fully owned by the Kenyan government, Kampala banked on strong bilateral ties to ensure reliable and secure fuel supplies. 

With the KES33 billion divestiture, however, the minister observes that increasing number of private investors could have divergent interests that could threaten smooth supply of fuel products to the landlocked county.

Energy security

"It was therefore important for the government of Uganda, through UNOC, to maximize its shareholding in the KPC, due to the company's criticality, and to secure additional guarantees and protections to manage the inherent conflict arising from the divested shareholding," Nankabirwa told the press in Uganda

"Therefore, the IPO and subsequent trading of KPC shares on the Nairobi Stock Exchange (NSE) are of significant strategic importance to the country, both from an energy security and a commercial perspective," she explained.

Days to the closure of the KPC IPO that seeks to raise KES106 billion, authorities in Nairobi granted Uganda a number of concessions, including 20.15 percent shareholding and veto powers over changes to pipeline tariffs, dividend policy, share capital, the company's business plan, and any amendments to its memorandum or articles of association.

"Uganda now moves from being primarily a user of the system to a shareholder in one of the region’s most critical fuel supply corridors," states UNOC in an update on X (formerly Twitter).

Minister Nankabirwa noted that these concessions are structured to cushion the country's strategic interests on accessibility, cost, and assured fuel supply. 

The announcement of allocation KPC IPO results is set on 4 March 2026 followed by electronic crediting of shares to CDS Accounts and processing of refunds by 6 March 2026. 

Earlier, Kenya's Treasury said it seeks to allocate 15 percent of KPC shares for oil marketers in Uganda, Rwanda and the Democratic Republic of Congo, with a further 20 percent set aside for East African Community citizens.

Listing and trading of KPC Shares at the Nairobi Securities Exchange (NSE) will start on 9 March 2026. 

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