Kenya successfully raised KSh106.3 billion ($824.1 million) from the initial public offering (IPO) of the state‑run Kenya Pipeline Company (KPC), according to Bloomberg.
Uganda Secures Strategic Stake
The IPO received a boost when the Uganda National Oil Company (UNOC) acquired a 20.15% stake for $255.4 million. Uganda’s Cabinet approved the purchase on February 23, 2026, underscoring the country’s reliance on Kenya’s petroleum infrastructure.
“The Government of Uganda’s participation has secured a 20.15 percent strategic shareholding in KPC,” Uganda’s Minister of Energy and Mineral Development announced.
Today at the Uganda Media Centre, the Minister of @MEMD_Uganda, @NankabirwaRS formally announced the Government’s participation in the IPO of the @kenyapipeline, following Cabinet approval.
Through UNOC, Uganda will acquire a 20.15% strategic stake in KPC. With 95% of our… pic.twitter.com/rjXzrOuRt7
— UNOC (@UNOC_UG) February 24, 2026
Kenya’s Privatisation Plan
KPC was converted into a public limited company in January 2026 ahead of its listing on the Nairobi Securities Exchange. The Government of Kenya offered 65% of its ordinary shares at KSh9.00 per share, while retaining a 35% stake.
Uganda’s Reliance on Kenya’s Pipeline
Uganda imports more than 95% of its fuel through Mombasa, transported via KPC’s pipeline system—about 2.96 billion litres annually. The remaining 5% comes through Tanzania’s ports of Dar es Salaam and Tanga.
In May 2024, UNOC signed a transportation and storage agreement with KPC, granting access to Kenya’s pipeline and depots for onward delivery into Uganda. Officials note that Uganda accounts for 65% of KPC’s transit volumes and contributes about 35% of its revenues.
Safeguards and Concessions
Uganda’s participation came with negotiated protections. Under the agreement, UNOC secured:
- Veto powers over changes in pipeline tariffs, dividend policy, share capital, and major business decisions.
- Board representation, with at least two directors appointed to KPC’s board.
- Assurances on affordability and accessibility of petroleum supplies.
“These concessions provide guarantees for the security of supply, accessibility, and affordability of petroleum products in Uganda,” the minister said.
UNOC welcomes the successful conclusion of engagements between Uganda and Kenya on Uganda’s participation in the Kenya Pipeline Company IPO.
Through this investment, UNOC has secured a strategic stake in KPC, strengthening Uganda’s access to critical petroleum infrastructure,… pic.twitter.com/JC6ACKLsmR
— UNOC (@UNOC_UG) February 23, 2026
Kenya’s IPO not only strengthens KPC’s capital base but also deepens regional energy ties. Uganda’s strategic stake ensures its fuel security while giving it a voice in governance. For Kenya, the oversubscribed sale signals renewed investor confidence in state‑owned enterprises and sets the stage for future privatizations.
