Uganda has formally announced plans to acquire a 20.15 percent strategic stake in Kenya Pipeline Company, marking a significant shift in the country’s approach to regional energy security and fuel supply management.
Speaking at the Uganda Media Centre, Energy and Mineral Development Minister Ruth Nankabirwa confirmed that Cabinet had approved the government’s participation in the Kenya Pipeline Company (KPC) Initial Public Offering through the Uganda National Oil Company (UNOC).
The move will see Uganda transition from being primarily a user of Kenya’s fuel transit infrastructure to becoming a shareholder in one of East Africa’s most critical petroleum supply corridors.
Uganda currently routes approximately 95 percent of its petroleum imports through Kenya, with about 65 percent of KPC’s transit volumes destined for the Ugandan market. Officials say this heavy reliance makes the Kenyan pipeline network central to Uganda’s fuel availability and pump price stability.
By taking an equity stake, Kampala aims to secure stronger influence over operational decisions, enhance supply predictability and hedge against regional disruptions that have previously triggered fuel shortages and price volatility.
Energy analysts view the investment as a strategic play to deepen regional integration while safeguarding Uganda’s growing energy demand, particularly as the country advances its upstream oil production plans and prepares for first oil.
The acquisition also aligns with Uganda’s broader strategy of strengthening state participation across the petroleum value chain — from upstream exploration and production to midstream transport and storage infrastructure.
Government officials argue that owning part of KPC not only enhances supply security but also positions Uganda to benefit financially from transit revenues linked to regional fuel flows.
The development signals a maturing energy diplomacy posture, with Uganda leveraging equity participation to secure long-term stability in a corridor that underpins its economic activity and industrial growth.