Uganda has formally moved to secure a strategic stake in the Kenya Pipeline Company (KPC), marking a major development in regional energy cooperation as the firm’s Initial Public Offering (IPO) enters its final days.
The move was spearheaded by Uganda’s Energy Minister, Ruth Nankabirwa Ssentamu, who led a high-level delegation to Nairobi to formalise the country’s participation.
UNOC to Anchor Uganda’s Investment
The investment is being undertaken through the Uganda National Oil Company (UNOC), signalling a significant shift in regional energy diplomacy.
“In Nairobi, I signed on behalf of the Ugandan Government to formalize our participation in the IPO of the Kenya Pipeline Company (KPC). Through the Uganda National Oil Company, Uganda will secure a strategic stake in this critical regional energy asset,” Ssentamu announced on social media.
The IPO is nearing its extended deadline of Tuesday, February 24, 2026, with Uganda’s entry seen as a major boost to investor confidence.
Why Uganda Is Buying Into KPC
Speaking after signing the agreement, Minister Nankabirwa said the decision is anchored on long-term energy security and supply chain stability.
“By investing in KPC, a key player in regional petroleum transport and storage, Uganda aims to enhance supply chain stability, ensure reliable and affordable fuel imports, and reinforce its strategic position in East Africa’s evolving energy landscape,” she said.
As a landlocked country, Uganda imports nearly all of its refined petroleum products through Kenya’s port and pipeline system. More than 90% of Uganda’s petroleum imports are transported via KPC’s pipeline infrastructure from the Port of Mombasa.
Regional Energy Integration
KPC plays a central role in petroleum transport and storage across East Africa, making it a critical asset in regional energy integration.
Uganda’s move to acquire shares not only strengthens bilateral ties between Nairobi and Kampala but also positions UNOC as a strategic player in the region’s evolving oil and gas sector.
Analysts say the investment underscores growing collaboration within the East African energy corridor, particularly as countries seek to secure fuel supply chains amid global market volatility.
