Uganda Buys a Seat at the Table: Kampala Moves to Secure Stake in Kenya Pipeline IPO

Uganda has taken a bold step in regional energy politics. Kampala has formally joined the ongoing Initial Public Offering of the Kenya Pipeline Company (KPC). The agreement was signed in Nairobi by Energy Minister Ruth Nankabirwa Ssentamu. The investment will be executed through the Uganda National Oil Company (UNOC).

This is not just another cross-border investment. It is a strategic play. Uganda is landlocked. More than 90 percent of its refined petroleum products move through Kenya’s pipeline network from the coast. By buying into KPC, Uganda shifts from being a customer to becoming a shareholder.

Speaking after the signing, Nankabirwa said the decision is about energy security. Stable fuel supply matters. Affordable imports matter. Control over logistics matters even more. KPC operates the infrastructure that transports and stores petroleum from the Port of Mombasa inland. For Uganda, that network is critical.

The deal gives Kampala influence, not just access. If Uganda maintains at least a 20 percent stake, it will have the right to appoint two directors to the KPC board. Certain strategic decisions will also require the approval of a Ugandan-appointed director. That means a voice in key operational and policy matters.

Kenya is offering 65 percent of KPC to the public, while retaining 35 percent. The IPO deadline has been extended to February 24, 2026, following regulatory approval. Billions of shares are on offer. Regional investors are watching closely.

Uganda’s Attorney General Kiryowa Kiwanuka described the move as aligned with East African Community integration goals. But beyond diplomacy, this is about leverage. Energy drives economies. Pipelines shape power.

For President Yoweri Museveni, the investment signals long-term thinking. Uganda is preparing for its own oil production era. Securing influence in regional fuel infrastructure strengthens its negotiating position.

This is more than an IPO story. It is a shift in regional energy balance. Uganda is no longer just importing fuel. It is investing in the system that delivers it.