By Felix Oketcho
In a bid to strengthen her energy security and regional cooperation,Uganda has acquired a 20.15% strategic stake in the Kenya Pipeline Company.
Ruth Nankabirwa, the Minister of Energy and Mineral Development revealed that Uganda secured the shareholding as part of KPC’s listing on the Nairobi Securities Exchange (NSE).
She noted that Under the listing arrangement, 65% of KPC’s issued share capital is being offered to local, regional, and international investors, while the Government of Kenya will retain a 35% stake.
Uganda imports approximately 95% of its petroleum products, equivalent to nearly 2.96 billion litres annually, primarily through Kenya via the port of Mombasa and the KPC pipeline network.
The country’s monthly petroleum demand stands at about 240 million litres, growing at an estimated annual rate of 7%. This makes KPC’s infrastructure central to Uganda’s fuel supply chain, price stability, and broader economic resilience.
“While the majority of Uganda’s imports are routed through Kenya, the country also supplements its supply through the ports of Dar es Salaam and Tanga in Tanzania. This diversified import framework enhances supply resilience and reinforces regional energy cooperation across East Africa,” the minister said.
Under Uganda’s Petroleum Products Supply framework, UNOC is the sole importer of bulk petroleum products for the domestic market. In May 2024, UNOC signed a Transportation and Storage Agreement with KPC to utilize Kenya’s pipeline and storage infrastructure for efficient handling and transportation of fuel imports to western Kenya depots for onward distribution into Uganda.
She said approximately 65% of transit volumes through the KPC system are destined for Uganda, and the country contributes nearly 35% of KPC’s revenues. Officials say this makes participation in the initial public offering both a strategic and commercial imperative.
Nakabirwa said Uganda’s acquisition reinforces its commitment to strengthening bilateral cooperation with Kenya and advancing regional integration under the East African Community framework.
“By taking an equity stake in KPC, Uganda positions itself to play a more direct role in a critical regional energy asset that underpins economic growth, fuel security, and long-term supply stability,”Nakabirwa stressed.
Uganda is developing a significant petroleum industry centered in the Albertine Graben, with approximately 6.5 billion barrels of STOIIP and 1.4–1.7 billion barrels estimated as recoverable
Key projects include the Tilenga (TotalEnergies) and Kingfisher (CNOOC) upstream developments, aiming for first oil production with infrastructure development progressing.
Uganda’s oil sector is in an advanced development stage, with
over 187 wells drilled and key projects exceeding 75% completion, keeping First Oil on track for the second half of 2026. The $15 billion investment in Tilenga (190,000 bpd), Kingfisher (40,000 bpd), and the EACOP pipeline is transforming the Albertine Graben into a major production hub.