Uganda secures $821.8 million stake in Kenya Pipeline IPO stake

Uganda, through the Uganda National Oil Company (UNOC), has secured a $821.8 million stake in the Kenya Pipeline Company (KPC) IPO, marking one of East Africa’s largest cross-border energy investments.

The acquisition grants Uganda the right to appoint two directors to KPC’s board, strengthening Kampala’s strategic influence over the region’s petroleum transit infrastructure. The Ksh106 billion ($821.8 million) deal represents a significant shift for Uganda, which previously relied solely on transit fees for refined petroleum.

Financial Comparison:
With approximately two-thirds of KPC’s export revenues linked to Uganda, the stake ensures both pricing leverage and supply security. The Energy Ministry in Kampala says the move will enhance petroleum access, affordability, and long-term stability for Uganda and its neighbors.

In 2025, KPC reported a net profit of Ksh8.2 billion ($63.71 million), down 4.5% from Ksh8.6 billion ($66.87 million) in 2024 due to rising operational costs and regulatory fees. Uganda’s board representation may help optimize revenue management and influence strategic pricing.

Strategic and Regional Significance:
Uganda’s entry signals a move from transit customer to strategic co-owner, shifting the balance of power in regional petroleum trade, a milestone in East African Community integration.

The IPO, expected to list on the Nairobi Securities Exchange in March 2026, is now under closer scrutiny due to Uganda’s participation. The strategic investment also underscores Kampala’s commitment to regional energy resilience and its ambition to secure long-term economic benefits from petroleum trade.