Kenya announced plans to sell a 65 percent stake in the Kenya Pipeline Company (KPC) to Uganda and other regional investors, a move aimed at deepening economic integration in East Africa.
President William Ruto made the announcement while attending the groundbreaking of the US$500 million Devki Mega Steel plant in Tororo, Uganda, alongside Ugandan President Yoweri Museveni. He said the Kenyan government would retain a 35 percent strategic stake, while opening opportunities for Ugandans and other East Africans to invest.
“The Government will retain a 35 percent strategic shareholding while creating opportunities for Ugandans and other East Africans to buy into the company,” Ruto said.
The divestment follows high-level negotiations between Nairobi and Kampala to enhance regional cooperation, particularly after past tensions over Uganda’s access to the Indian Ocean, a vital import-export route.
Under the new arrangement, Uganda is expected to become a major investor. Kenya Pipeline Company plans to list on the Nairobi Securities Exchange, with an initial public offering scheduled by the end of March 2026.
Ruto added that Kenya and Uganda would co-invest in extending the Eldoret-Kampala petroleum pipeline to Rwanda and the Democratic Republic of Congo, and launch the Standard Gauge Railway extension from Naivasha to Kampala in January 2026, strengthening regional transport links.
The privatization process, however, could face delays due to ongoing court challenges to the Privatization Act 2025 and concerns over public participation in the sale of national assets.
Data shows Uganda exported roughly 8 million tonnes through Mombasa port in 2024, representing 65.7 percent of the port’s total transit cargo, making it the leading user, followed by South Sudan, the Democratic Republic of Congo, and Rwanda.
