Uganda has officially announced its strategic investment in the Kenya Pipeline Company (KPC), acquiring a 20.15% stake through the Uganda National Oil Company (UNOC). The announcement, made by Minister of Energy and Mineral Development Nankabirwa Ruth, follows approval by the Ugandan Cabinet and marks a major milestone in the country’s energy strategy.

The investment comes as Uganda imports over 95% of its petroleum products through the Port of Mombasa via the Kenya Pipeline system, accounting for approximately 2.96 billion litres annually. About 65% of KPC’s transit volumes are destined for Uganda, representing roughly 35% of the company’s revenues. By becoming a shareholder, Uganda moves from being primarily a user of the pipeline system to having a direct stake in one of East Africa’s most critical fuel supply corridors.

Through this investment, Uganda will appoint at least two directors to the KPC Board, ensuring strong oversight and safeguarding national interests. Key concessions in the agreement give Uganda veto powers over tariff changes, dividend policy revisions, and major business plan decisions, while protecting the country against dilution of its 20.15% shareholding.

Minister Nankabirwa emphasized that the move guarantees security of supply, affordability, and accessibility of petroleum products for Ugandans. She described the investment as a strategic milestone, strengthening both Uganda’s energy security and commercial position in the region. The participation also comes as KPC prepares for its listing on the Nairobi Securities Exchange, marking a shift toward partial privatization and highlighting the importance of Uganda’s equity in protecting its petroleum supply chain.

The Uganda-KPC partnership underscores the country’s commitment to long-term energy security, regional cooperation, and sustainable management of critical infrastructure, ensuring that fuel supply remains reliable, affordable, and under national influence for years to come.