Uganda has secured a 20.15 percent strategic stake in the Kenya Pipeline Company (KPC) following Cabinet approval to participate in the company’s Initial Public Offering (IPO).
The development was announced on Tuesday by the Minister of Energy and Mineral Development, Ruth Nankabirwa, during a media briefing in Kampala.
Kenya is partially privatizing KPC through a listing on the Nairobi Securities Exchange (NSE), offering 65 percent of its shares to the public at KES 9 per share, while retaining a 35 percent stake.
Uganda’s investment will be executed through the Uganda National Oil Company (UNOC).
KPC operates the pipeline and storage infrastructure that transports petroleum products from the port of Mombasa to Western Kenya. Uganda relies on this route for more than 95 percent of its monthly petroleum imports, which total nearly three billion litres annually.
“With KPC shifting to a partially privatized structure, governance will increasingly focus on profit-driven interests. Uganda’s shareholding is critical to securing our energy supply and protecting the interests of our people,” Nankabirwa said.
She noted that Uganda negotiated key safeguards as part of the transaction, including veto powers over pipeline tariffs, dividend policies, alterations to share capital, changes to KPC’s business plan, and amendments to the company’s governing documents. Uganda will also appoint at least two representatives to KPC’s board of directors.
“These guarantees ensure that Uganda’s strategic interests in energy security, affordability, and accessibility of petroleum products are protected,” the minister added, calling for public support for the move.
Uganda has historically depended on strong bilateral relations with Kenya to maintain steady petroleum supplies. However, officials say the partial privatization of KPC introduces new commercial considerations that could prioritize returns for private investors.
