Uganda has acquired a 20.15% stake in the Kenya Pipeline Company (KPC) through the Uganda National Oil Company (UNOC), a move aimed at securing the country’s energy supply and deepening regional integration.
This acquisition was confirmed today, 24th February, 2026, by Minister of Energy and Mineral Development, Dr. Ruth Nankabirwa Ssentamu, during a press briefing at the Uganda Media Center.
The investment follows the formal signing of participation documents in Nairobi last week, attended by Minister Nankabirwa, Attorney General Kiryowa Kiwanuka, and a high-level government delegation.
It coincides with KPC’s landmark Initial Public Offering (IPO), which raised approximately USD 825 million, offering up to 65% of the company’s equity to private and institutional investors.
Describing the acquisition as a strategic decision, she emphasized its role in enhancing Uganda’s energy security and ensuring a more active role in regional energy infrastructure.
“By acquiring a stake in the Kenya Pipeline Company, a critical regional asset supplying nearly all of Uganda’s imported refined petroleum products, Uganda transitions from being solely a transit customer to an active partner with a direct interest in the infrastructure that underpins its fuel supply chain,” Minister Nankabirwa stated.
The Minister highlighted that the 20.15% shareholding, valued at approximately USD 255.4 million, will be partly funded through a recently secured financing facility.
She emphasized that the investment ensures greater stability, reliability, and potential for more predictable fuel imports, while aligning with Uganda’s broader objectives of supporting industrial growth, energy resilience, and regional cooperation under frameworks such as the Northern Corridor and East African Community.
“By becoming a shareholder, Uganda strengthens its position in the regional energy sector and promotes predictable fuel supply, in line with our commitments under the Northern Corridor and East African Community,” the Energy and Mineral Development Minister added.
Dr. Nankabirwa noted that Uganda’s timing in joining the IPO, amid its extended closing period, strengthens the offer and safeguards long-term national interests.
Addressing investor concerns over valuation debates, she remarked that strategic benefits, particularly in securing supply amid rising regional demand, outweigh short-term market considerations.
The announcement comes as Uganda prepares for first oil production later this year and progresses with the East African Crude Oil Pipeline (EACOP) project, where both Uganda and Kenya play pivotal roles.
The Minister reiterated the government’s commitment to diversifying energy sources, including renewables and domestic petroleum development, while leveraging regional partnerships.
Experts in the energy sector anticipate that Uganda’s participation in KPC may open doors for further joint ventures in petroleum storage, transportation, and possibly refined product distribution.
The Ministry continues to monitor the finalization of the IPO and share allocation processes, with updates to be communicated through official channels.
Dr. Nankabirwa encouraged citizens and businesses to stay informed on developments impacting fuel supply and pricing in the region.
This investment will not only strengthen Uganda’s energy infrastructure but also benefit citizens and businesses through more stable and predictable fuel supply, ensuring that regional partnerships translate into tangible gains for the people.
