The Government of Uganda has finalized a landmark agreement with the Government of Kenya to acquire shares in Kenya Pipeline Company as the company advances plans for an Initial Public Offering (IPO).
The negotiations were led by Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu, together with the Attorney General and a technical delegation.
Under the agreement, Uganda will invest in KPC through the Uganda National Oil Company (UNOC), the country’s national oil investment arm, which will hold the shares on behalf of the state.
This strategic investment marks a significant step in Uganda’s efforts to secure long-term access to petroleum products while deepening regional energy cooperation.
By owning shares in KPC, Uganda moves beyond being solely dependent on fuel imports through transit pipelines, positioning itself as an active participant in a key regional energy infrastructure.
KPC operates the petroleum pipeline network transporting refined products from the port of Mombasa to inland depots across Kenya and neighbouring countries, including Uganda.
This corridor remains critical for Uganda’s fuel imports, making the share acquisition both strategically and commercially significant.
Officials said the investment will enhance energy security, stabilise fuel supply, and improve predictability in pricing for Uganda.
Ownership of shares provides Uganda with visibility into KPC’s operations, tariff structures, infrastructure expansion plans, and maintenance schedules — all essential factors in ensuring consistent fuel availability.
The investment is also expected to strengthen coordination between UNOC and KPC, particularly as regional demand for petroleum products continues to grow.
By being part of KPC’s governance structure, Uganda can help optimise operations, reduce supply disruptions, and support infrastructure upgrades to meet future consumption needs.
Financially, the acquisition offers potential returns through dividends and long-term capital growth, while giving Uganda influence over strategic decisions that affect regional fuel logistics.
It complements UNOC’s broader objective of building a diversified portfolio across upstream, midstream, and downstream energy sectors.
As Uganda prepares for domestic oil production, maintaining reliable access to imported petroleum remains critical to supporting industrial growth, transport, agriculture, and overall economic stability.
Investing in KPC ensures that Uganda can safeguard its fuel supply while benefiting from regional infrastructure development.
The Government of Uganda expressed appreciation to Kenya for recognising its strategic role in KPC’s operations.
After the IPO, Uganda plans to work closely with Kenya and other shareholders to enhance corporate governance, improve efficiency, and promote regional energy integration.
This milestone also strengthens bilateral relations and supports Uganda’s commitment to the East African Community framework, where shared infrastructure investments remain vital for trade competitiveness and economic growth.
By acquiring shares in KPC, Uganda demonstrates a forward-looking approach to energy security — ensuring not only access to fuel but also influence in the management of critical regional energy assets.
