Cabinet has approved the Government of Uganda’s participation in the Initial Public Offering (IPO) of the Kenya Pipeline Company (KPC), enabling Uganda, through the Uganda National Oil Company (UNOC), to secure a 20.15% strategic shareholding in the company.
The development was confirmed by the Minister of Energy and Mineral Development, Hon. Dr. Ruth Nankabirwa, in a press statement issued on Tuesday, following a Cabinet resolution made during its sitting on Monday, 23rd February 2026.
Dr. Nankabirwa disclosed that the Government of Kenya intends to partially privatize KPC by listing the company on the Nairobi Securities Exchange (NSE). The Kenya Pipeline Company, incorporated under Kenya’s Companies Act, was converted into a public limited company in January 2026 following the sale of 11,812,644,350 ordinary shares at an offer price of KES 9.00 per share. The public offer represents 65% of the company’s issued ordinary shares, while the Government of Kenya will retain 35% ownership.
The minister explained that the investment aligns with Uganda’s energy security strategy. UNOC, following amendments to the Petroleum Products Supply Act 2023, serves as the sole importer and supplier of bulk petroleum products, including diesel, petrol, Jet A-1, and kerosene, for the Ugandan market. These products are distributed through Ugandan oil marketing companies.
In May 2024, UNOC signed a Transportation and Storage Agreement with KPC to utilize Kenya’s pipeline infrastructure for importing petroleum products via the Port of Mombasa before transporting them through the pipeline to depots in Western Kenya, where Ugandan oil marketing companies collect their allocated supplies for distribution in Uganda.
Currently, over 95% of Uganda’s monthly petroleum demand is met through imports via the Port of Mombasa, representing approximately 2.96 billion litres annually. The remaining 5% is imported through Tanzania’s ports of Dar es Salaam and Tanga.
Officials also noted that about 65% of transit volumes through the Kenya Pipeline system are destined for Uganda, meaning Uganda contributes roughly 35% of KPC’s revenues through pipeline and storage utilization.
Dr. Nankabirwa said that while Uganda previously relied on strong bilateral relations with Kenya when KPC was fully government-owned, partial privatization introduces new commercial dynamics driven by private investor interests and dividend expectations. She said it was therefore important for Uganda to secure a strategic shareholding and obtain safeguards to protect its energy interests.
She emphasized that the IPO and subsequent trading of KPC shares on the NSE are of strategic importance to Uganda’s energy security and commercial stability.
The minister commended President Yoweri Museveni, the Minister of Finance, Planning and Economic Development, and the Attorney General for supporting the negotiations that led to the agreement.
Through diplomatic engagements, Kenya granted Uganda several key concessions, including:
• 20.15% shareholding in KPC
• Veto power over pipeline tariff changes
• Right to appoint at least two directors to the KPC board
• Veto power over revisions to dividend policy
• Veto power over major changes to the company’s business plan
• Veto power over any changes to share capital that could dilute Uganda’s stake
• Veto power over amendments to the company’s Memorandum and Articles of Association
Dr. Nankabirwa said these protections are expected to safeguard Uganda’s interests, ensuring secure, affordable, and accessible petroleum supplies.
She called on the media and the Ugandan public to support the initiative, describing it as a strategic investment for the country’s economic and energy future and the welfare of citizens.
