Africa-Press – Uganda. The Government of Uganda has approved participation in the Initial Public Offering (IPO) of the Kenya Pipeline Company, securing a 20.15% strategic shareholding through the Uganda National Oil Company (UNOC).
Announcing the decision, Minister of Energy and Mineral Development Ruth Nankabirwa said Cabinet approved the move on Monday, February 23, 2026, calling it a milestone for Uganda’s energy security and economic stability.
“I am glad to inform you that Cabinet approved the Government of Uganda’s participation in the Initial Public Offering of the Kenya Pipeline Company through UNOC, securing a 20.15% strategic shareholding in the company,” Nankabirwa said.
The Government of Kenya is partially privatising KPC by listing it on the Nairobi Securities Exchange. KPC, incorporated under Kenya’s Companies Act (Cap 486), was converted into a public limited company in January 2026.
The Government of Kenya is offering 11,812,644,350 ordinary shares at KShs9.00 per share, representing 65% of issued shares, while retaining a 35 percent stake.
The move transitions KPC from full government ownership to a mixed-ownership model that includes private investors.
Uganda’s petroleum supply chain is heavily dependent on Kenya’s infrastructure. Currently, over 95 percent of Uganda’s petroleum imports — about 2.96 billion litres annually — enter through the port of Mombasa and are transported via the KPC pipeline system, while the remainder is imported through Tanzanian ports, including Dar-es-Salaam and Tanga.
In May 2024, UNOC signed a Transportation and Storage Agreement with KPC to facilitate importation of diesel, petrol, Jet A-1 and kerosene through Mombasa, with transportation via pipeline to depots in Western Kenya.
Ugandan Oil Marketing Companies (OMCs) then collect and distribute the products domestically.
Nankabirwa highlighted Uganda’s stake in KPC operations.
“It is worth noting that 65% of the transit volumes through the Kenya Pipeline system are destined for Uganda. As such, Uganda contributes about 35% of KPC’s revenues through the utilisation of the pipeline and storage facilities,” she said.
Previously, Uganda relied on strong bilateral relations to guarantee stable fuel supply when KPC was fully government-owned.
With privatisation and the introduction of private shareholders, KPC’s governance will increasingly prioritise profit-driven interests.
“During the period when KPC was 100% Government of Kenya-owned, Uganda relied on strong bilateral relationships to ensure a reliable and secure supply of petroleum products.
“However, the privatisation of KPC and the divestiture of its shareholding are likely to shift KPC’s governance to focus on the profit-driven interests of private-sector investors, with the expectation of annual dividend payments,” Nankabirwa explained.
To safeguard Uganda’s interests, the government secured strategic concessions, including:
20.15% shareholding in KPC
Veto power on changes to pipeline tariffs
Appointment of at least two directors to the KPC Board
Veto power on dividend policy revisions
Veto power on any material change to the business plan
Veto power on any increase or reduction in share capital
Veto power on alterations to the company’s Memorandum or Articles of Association
“These voting rights and concessions provide satisfactory guarantees and protections for the Government of Uganda’s strategic interests of security of supply, affordability, and accessibility,” Nankabirwa said. She described the shareholding decision as both strategic and commercial.
The Minister thanked President Yoweri Museveni and key government officials for supporting the engagement with Kenya.
With Uganda now a strategic shareholder, government officials say the move strengthens the country’s ability to influence decisions affecting fuel pricing, transportation costs and long-term supply stability. Nankabirwa called on the media and public to support the initiative.
The investment signals a new phase in Uganda’s energy diplomacy, combining commercial participation with strategic safeguards to secure the nation’s fuel future.
