By Diana N. Kintu
Uganda has secured a strategic stake in the Kenya Pipeline Company (KPC) following its participation in the company’s Initial Public Offering (IPO), in a move expected to strengthen regional energy cooperation and safeguard the country’s long-term fuel security.
The investment was formalised in Nairobi by the Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu, who signed on behalf of the Government of Uganda. She was accompanied by the Attorney General, Kiryowa Kiwanuka, leading a high-level delegation that concluded Uganda’s entry into KPC’s shareholding structure.
Through the Uganda National Oil Company (UNOC), the state-owned enterprise mandated to manage Uganda’s commercial interests in the petroleum sector, the country will now participate directly in the management and expansion of critical petroleum transport and storage infrastructure in the region.
UNOC welcomed the development, describing it as a milestone in Uganda’s efforts to secure stable and efficient fuel supply routes. The company noted that acquiring a stake in KPC will improve supply reliability, enhance operational efficiency across the regional petroleum value chain and deepen energy integration among East African Community member states.
Speaking after the signing ceremony, Ms Nankabirwa underscored the strategic importance of the investment, emphasising that KPC plays a central role in petroleum transportation and storage across the region.
“By investing in KPC, a key player in regional petroleum transport and storage, Uganda aims to enhance supply chain stability, ensure reliable and affordable fuel imports, and reinforce its strategic position in East Africa’s evolving energy landscape,” she said.
Uganda relies heavily on imported petroleum products, most of which transit through Kenya’s port and pipeline infrastructure before reaching the domestic market. Direct participation in KPC’s ownership structure is therefore expected to provide Uganda with greater influence over decisions affecting tariffs, infrastructure expansion and long-term planning of petroleum logistics.
UNOC pledged to work closely with Kenyan counterparts and other regional partners to strengthen operations, expand infrastructure capacity and support innovation in petroleum handling and distribution systems. The company indicated that enhanced cooperation would help reduce bottlenecks, improve turnaround times and mitigate supply disruptions that occasionally affect fuel availability.
Energy analysts observe that the move aligns with Uganda’s broader strategy of securing upstream, midstream and downstream interests as the country prepares for first oil production from its own petroleum reserves. By investing in strategic regional infrastructure, Uganda aims to diversify supply routes while consolidating its role as an emerging energy player within East Africa.
The development also comes amid broader diplomatic and economic engagements aimed at promoting regional stability and cooperation. Recent high-level interactions between Ugandan leadership and regional actors have underscored the importance of coordinated approaches to infrastructure development, trade facilitation and energy security.
Officials from both Uganda and Kenya described the successful conclusion of the IPO engagement as a testament to the strong bilateral ties between the two neighbouring states. The partnership is expected to foster deeper collaboration in petroleum logistics, regulatory harmonisation and joint infrastructure planning.
With the acquisition of shares in KPC, Uganda is now positioned as a shareholder in one of East Africa’s most vital petroleum infrastructure companies. Government officials say the move not only strengthens national fuel security but also reinforces Uganda’s commitment to regional integration, trade expansion and sustainable economic growth driven by strategic energy investments.Bottom of Form