Bell ringing ceremony marks Uganda’s strategic investment in Kenya Pipeline Company

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A bell-ringing ceremony at the Nairobi Securities Exchange on Tuesday morning (March 10) marked a historic milestone as Kenya Pipeline Company (KPC) officially commenced trading on the exchange following a successful Initial Public Offering (IPO).

The ceremony was officiated by the President of the Republic of Kenya, William Ruto, and signalled the start of public trading of KPC shares, drawing regional attention to one of East Africa’s most critical energy infrastructure companies.

During the ceremony, it was announced that the Government of Uganda had acquired a 20.15 percent shareholding in Kenya Pipeline Company, underscoring the country’s commitment to strengthening regional energy security and strategic infrastructure partnerships.

Speaking on behalf of the Minister of Energy and Mineral Development, Ruth Nankabirwa, the Permanent Secretary of the ministry, Irene Bateebe, described the investment as a significant milestone in advancing regional economic integration and cooperation in the petroleum sector.

“This investment represents a strategic step toward strengthening regional energy security while deepening economic collaboration between Uganda and Kenya,” she said.

The KPC IPO raised over Kenya Shillings 106 billion, reflecting strong investor confidence in Kenya’s infrastructure and capital markets.

Uganda’s participation in the offering reflects the growing strategic partnership between Uganda and Kenya, particularly in the petroleum supply chain.

Uganda currently imports approximately 95 percent of its petroleum products through Kenya, amounting to nearly 2.96 billion litres annually, making Kenya’s pipeline infrastructure a critical component of Uganda’s fuel supply system.

Eng. Bateebe noted that under the leadership of Yoweri Kaguta Museveni, the Uganda National Oil Company (UNOC) was designated as the sole importer of bulk petroleum products destined for the Ugandan market, a move aimed at enhancing efficiency, transparency, and national energy security.

In May 2024, UNOC signed a Transportation and Storage Agreement with Kenya Pipeline Company, enabling Uganda to utilise the pipeline infrastructure transporting petroleum products from the Port of Mombasa to depots in Western Kenya, from where oil marketing companies transport the fuel into Uganda for distribution.

The Government of Uganda considers the acquisition a sound and strategic investment, citing KPC’s strong financial performance. Between 2021 and 2025, the company recorded an average annual revenue growth of 8 percent. In 2025 alone, KPC generated KSh 38.6 billion in revenue, with approximately 35 percent of the volumes attributed to Ugandan petroleum imports, and recorded a profit after tax of KSh 7.49 billion.

Officials say the investment aligns with the vision of the East African Community to deepen regional integration through shared infrastructure, trade, and economic collaboration.

By opening ownership of critical infrastructure to regional partners such as Uganda and Rwanda, Kenya has set a precedent for strengthening economic resilience, reducing supply chain vulnerabilities, and promoting shared prosperity across East Africa.

Eng. Bateebe also commended the Kenyan government and technical teams involved in facilitating the transaction, noting that the milestone demonstrates the power of regional collaboration in advancing Africa’s economic transformation.

“As we ring this bell today, we are marking more than a financial transaction,” she said. “We are ushering in a new era of deeper East African integration and demonstrating how African countries can work together to develop strategic infrastructure for mutual prosperity.”

The ceremony concluded with a message emphasising regional unity, captured in the Swahili proverb: “Umoja ni nguvu, utengano ni udhaifu” — unity is strength, division is weakness.