Uganda’s Strategic Interest Protected as Kenya Pipeline Moves Toward IPO

By Isaac Senabulaya

The Kenyan government has assured Ugandan authorities that it fully recognizes Uganda’s strategic stake in the regional oil pipeline and its critical role in strengthening regional energy security.
The assurance was delivered by Kenya’s Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi, during a stakeholder meeting jointly organized by the Kenya Pipeline Company (KPC) and the Uganda National Oil Company (UNOC) at Mestil Hotel in Kampala.

During the meeting, stakeholders were briefed on the ownership structure of the Kenya Pipeline Company as it advances plans for an initial public offering (IPO) and a subsequent listing on the Nairobi Securities Exchange (NSE). The IPO process comes as KPC continues to safeguard the distribution of approximately 2.9 billion litres of petroleum products across the region this year.

Mbadi revealed that the Government of Kenya has secured all the necessary approvals to reduce its shareholding in KPC in order to broaden ownership through the IPO, while retaining a strategic stake and regulatory oversight to protect both national and regional interests.

He explained that the planned divestment is intended to strengthen KPC’s long-term sustainability, improve operational efficiency, and provide access to long-term capital for expansion—without adding pressure to the country’s sovereign balance sheet.

The Treasury Cabinet Secretary further reaffirmed Kenya’s commitment to deeper economic integration with Uganda through major infrastructure investments. He cited ongoing efforts to extend the Standard Gauge Railway (SGR) from Naivasha to Malaba via Kisumu as a key component of this strategy.

Mbadi also disclosed that the Kenyan government has embarked on the construction of dual carriage highways from Nairobi to the Malaba border through two corridors—one via Eldoret and the other via Kisumu. Some sections of the road network will feature six lanes, while others will have four lanes, aimed at easing trade flows and improving cross-border connectivity.