Uganda has cemented its role in Kenya Pipeline Company (KPC) governance after acquiring a 20.15% stake during the company's 2026 privatisation. This investment granted Uganda representation on KPC’s board of directors.

New Board Appointments

KPC announced the appointment of five non-executive directors effective July 28, 2026. Among them are two senior Ugandan officials:

  • Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury at Uganda’s Ministry of Finance, Planning and Economic Development.
  • Irene Pauline Bateebe, Permanent Secretary at Uganda’s Ministry of Energy and Mineral Development.

The other appointees are Kenyan public sector leaders: Meshack Otieno Kidenda, Samson Kipkemboi Burgei, and Ronald Kenyanya Nyamosi.

Privatisation and Shareholding

Earlier in 2026, KPC sold a 65% stake through an initial public offering (IPO), offering 11.8 billion shares at Ksh9 each. The Kenyan government retained 35% ownership, while investors from Kenya and East Africa purchased the majority.

Uganda emerged as a key investor, acquiring over 20% of KPC’s shares. This stake reflects Uganda's reliance on the Kenyan pipeline network, which transports nearly 95% of its petroleum products—approximately 2.96 billion litres annually—from Mombasa.

Strategic Regional Collaboration

Uganda’s investment follows the 2024 Transportation and Storage Agreement between Uganda National Oil Company and KPC, ensuring seamless fuel movement through Kenya’s pipeline before distribution in Uganda.

President William Ruto noted that Uganda initially sought a 50% stake but agreed to start with a smaller share, strengthening bilateral ties without compromising Kenyan majority control.

Impact on KPC Governance and Operations

KPC’s transition into a publicly listed company in 2026 ended its status as a state corporation, positioning it under capital markets regulation. The new board members are expected to drive KPC’s strategic goals, sustainability, and uphold corporate governance standards.

KPC’s financial performance has been robust, with an 8% average annual revenue growth from 2021 to 2025, generating Ksh38.6 billion in 2025 and posting a profit after tax of Ksh7.49 billion.

Regional Energy Integration

The Ugandan stake symbolizes deepening East African infrastructure cooperation. KPC remains the primary transporter of petroleum products from Mombasa to Kenya, Uganda, and neighboring countries.

While Kenya retains majority ownership, Uganda’s board presence reflects its importance as a shareholder and major pipeline user, enhancing regional energy collaboration and infrastructure development.