UNOC Strengthens Regional Energy Security with Strategic Investment in Kenya Pipeline Company

Following Cabinet approval, the Government of Uganda has participated in the Initial Public Offering (IPO) of the Kenya Pipeline Company (KPC) through the Uganda National Oil Company (UNOC), securing a 20.15% strategic shareholding in the company.

The approval followed high-level engagements between the Government of Uganda and the Government of Kenya regarding KPC’s listing on the Nairobi Securities Exchange (NSE), where 65% of the company’s issued share capital was offered to local, regional, and international investors. 

The Government of Kenya retained a 35% stake.

Uganda imports approximately 95% of its petroleum products, nearly 2.96 billion litres annually, through Kenya via the Port of Mombasa and the KPC pipeline system. 

With a monthly demand of about 240 million litres and an annual growth rate of around 7 percent, KPC’s infrastructure remains central to Uganda’s fuel supply chain, price stability, and broader economic resilience.

While the majority of imports are routed through Kenya, Uganda also supplements supply through the ports of Dar es Salaam and Tanga in Tanzania, reinforcing supply resilience and strengthening regional energy cooperation across East Africa.

Under the Petroleum Products Supply framework, UNOC is the sole importer of bulk petroleum products destined for the Ugandan market. 

In May 2024, UNOC signed a Transportation and Storage Agreement with KPC to utilise Kenya’s pipeline and storage infrastructure to transport fuel imports to depots in Western Kenya for onward distribution into Uganda.

Given that approximately 65% of transit volumes through the KPC system are destined for Uganda, contributing nearly 35% of KPC’s revenues, the Government’s participation through UNOC represents both a strategic and commercial investment.

This acquisition reinforces Uganda’s commitment to strengthening bilateral cooperation with Kenya and advancing regional integration under the East African Community framework, while positioning the country to play a more direct role in a critical regional energy asset that underpins economic growth and long-term energy security.