Uganda has formalised its participation in the ongoing Initial Public Offering (IPO) of the Kenya Pipeline Company (KPC), moving to secure a strategic stake in the East African energy infrastructure crucial for the landlocked country’s fuel imports.
Uganda’s Energy Minister, Ruth Nankabirwa Ssentamu, led a high-level delegation to Nairobi on Monday to sign the agreement, acting on behalf of the Ugandan government through the Uganda National Oil Company (UNOC). The move comes as the IPO, which opened earlier this month, enters its final days, with the deadline extended to Tuesday, February 24, 2026.
“In Nairobi, I signed on behalf of the Ugandan government to formalise our participation in the IPO of the Kenya Pipeline Company,” Nankabirwa said in a statement shared on social media. “Through UNOC, Uganda will secure a strategic stake in this critical regional energy asset.”
The KPC IPO aims to raise 106.3 billion Kenyan shillings ($805 million) through the sale of 11.81 billion ordinary shares at 9 shillings each, representing 65 percent of the state-owned fuel transporter. The Kenyan government will retain a 35 percent stake, while investors in the public offer include institutional and retail participants from across the region.
Uganda’s decision to buy into KPC is driven by strategic energy security considerations. The country imports virtually all of its refined petroleum products through Kenya’s port at Mombasa and the KPC pipeline system, which transports more than 90 percent of Uganda’s fuel. By acquiring a stake, Kampala aims to enhance supply chain stability, secure affordable fuel, and assert influence over critical logistics infrastructure.
“By investing in KPC, a key player in regional petroleum transport and storage, Uganda aims to reinforce its strategic position in East Africa’s evolving energy landscape,” Nankabirwa said.
The agreement grants Uganda the right to appoint at least two directors to KPC’s board, provided it maintains a minimum 20 percent shareholding. Certain reserved matters such as strategic investment approvals, pipeline expansion, and infrastructure financing will now require the affirmative vote of a Ugandan-appointed director alongside a director nominated by the Kenyan government, giving Uganda formal influence over major decisions without creating a new class of shares or altering existing voting rights.
Attorney General Kiryowa Kiwanuka, part of the Ugandan delegation, said the deal is consistent with East African Community protocols promoting economic integration and regional infrastructure harmonisation. “Uganda’s participation aligns with EAC objectives and allows for cooperative management of cross-border petroleum logistics,” Kiwanuka said.
The IPO’s closing date was extended from February 19 to February 24 to allow for broader public participation, particularly from retail investors who requested additional time to submit applications. Acting Managing Director of Kenya’s Privatisation Authority, Janerose Omondi, said the extension aimed to increase accessibility and transparency for investors.
The KPC listing represents one of the largest public offerings in East Africa in recent years, and Uganda’s involvement marks a strategic shift from passive fuel importing to stakeholder engagement in regional energy infrastructure. The investment is expected to deepen cross-border cooperation and provide Kampala with a platform to influence pipeline operations critical to its domestic energy supply.
Uganda’s move follows a growing trend of regional governments seeking stakes in strategic infrastructure to secure supply chains and enhance resilience against market shocks. The KPC IPO, combined with Uganda’s direct participation, underscores the importance of energy logistics to East Africa’s economic stability and integration efforts.
The subscription process closes on Tuesday, with the deal expected to formalise Uganda’s stake immediately upon allocation.
Uganda has moved to acquire a strategic stake in the Kenya Pipeline Company (KPC) through the Uganda National Oil Company (UNOC) as part of the state-owned fuel transporter’s Initial Public Offering (IPO). The investment gives Uganda the right to appoint at least two directors to KPC’s board, provided it maintains a minimum 20 percent shareholding.
The IPO, launched to raise 106.3 billion Kenyan shillings ($805 million) by selling 65 percent of KPC’s shares at 9 shillings each, was extended to February 24, 2026, to allow broader public participation. The Kenyan government retains the remaining 35 percent.
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Uganda relies heavily on KPC’s pipeline and storage network, importing over 90 percent of its refined petroleum products via the Port of Mombasa. Securing a stake is a strategic move to enhance energy security, ensure stable fuel supply, and gain influence over key operational and investment decisions. The agreement aligns with East African Community protocols promoting regional economic integration and infrastructure cooperation.
The IPO also marks a significant regional collaboration in energy infrastructure, with Uganda shifting from a passive fuel importer to an active stakeholder in East Africa’s petroleum logistics network.
