A bell ringing ceremony at the Nairobi Securities Exchange marked the start of public trading for shares of Kenya Pipeline Company (KPC) following its Initial Public Offering (IPO).
The ceremony was presided over by Kenya’s President William Ruto and marked the formal listing of one of East Africa’s key energy infrastructure companies on the stock exchange.
During the event it was revealed that the Government of Uganda had acquired a 20.15 percent stake in Kenya Pipeline Company, a move tied to the country’s efforts to secure reliable fuel supply and deepen cooperation with Kenya in the energy sector.
Speaking on behalf of the Minister of Energy and Mineral Development Ruth Nankabirwa, the ministry’s Permanent Secretary Irene Bateebe said the investment reflects the growing economic ties between Uganda and Kenya, particularly in petroleum supply.
“This investment represents a strategic step toward strengthening regional energy security while deepening economic collaboration between Uganda and Kenya,” she said.
The KPC IPO raised more than Kenya Shillings 106 billion, drawing strong investor interest in the company and Kenya’s capital markets.
Uganda’s stake in the company comes at a time when the country continues to rely heavily on Kenya’s fuel transport infrastructure. About 95 percent of Uganda’s petroleum products are imported through Kenya, amounting to roughly 2.96 billion litres each year.
Bateebe said that under the leadership of President Yoweri Kaguta Museveni, the Uganda National Oil Company (UNOC) was designated as the sole importer of bulk petroleum products destined for the Ugandan market, a policy aimed at improving efficiency, transparency and energy security.
In May 2024, UNOC signed a Transportation and Storage Agreement with Kenya Pipeline Company allowing Uganda to use the pipeline system that transports petroleum products from the Port of Mombasa to storage depots in western Kenya. From there, oil marketing companies move the fuel by road into Uganda for distribution.
Officials say the investment was also informed by the financial performance of Kenya Pipeline Company. Between 2021 and 2025, the company posted an average annual revenue growth of about 8 percent. In 2025, it generated KSh 38.6 billion in revenue and recorded a profit after tax of KSh 7.49 billion. Roughly 35 percent of the volumes handled by the pipeline were linked to petroleum imports destined for Uganda.
The move also fits within wider East African Community efforts to deepen regional cooperation through shared infrastructure and trade.
Kenya’s decision to open ownership of such infrastructure to regional partners including Uganda and Rwanda is seen as a step toward strengthening supply chains and improving regional energy resilience.
Bateebe thanked the Kenyan government and the teams involved in the transaction, saying the development shows what regional cooperation can achieve.
“As we ring this bell today, we are marking more than a financial transaction,” she said. “We are ushering in a new era of deeper East African integration and demonstrating how African countries can work together to develop strategic infrastructure.”
