The Government of Uganda has sealed a deal to buy a stake in Kenya Pipeline Company which will see it receive two board director seats in KPC.
This comes after Kenya’s capital market authority approved the extension of the IPO for three working days.
Confirming the deal, Uganda’s Minister of Energy and Mineral Development, Ruth Ssentamu, signed the deal, sealing the regional energy asset.
“In Nairobi, I signed on behalf of the Ugandan Government to formalize our participation in the IPO of the Kenya Pipeline Company (KPC). Through the Uganda National Oil Company, Uganda will secure a strategic stake in this critical regional energy asset,” stated Ssentamu.
Uganda Joins Kenya Pipeline’s 106.3 billion IPO
The Ugandan government will now have a stake in Kenya Pipeline’s IPO, which is valued at 106.3 billion.
Also Read: CMA Approves Extension of Kenya Pipeline IPO
Uganda’s participation in the IPO was followed by recent amendments to KPC’s Articles of Association, which extended the offer period at the capital markets authority’s request.
Under the framework, Uganda is entitled to appoint at least two directors to the company’s board, provided it maintains a minimum shareholding of 20.o%.
According to Uganda’s Permanent Secretary in the Ministry of Energy and Mineral Development, Irene Bateebe, Uganda’s participation in the IPO is a strategic decision aimed at accessing petroleum products and improving affordability.
“The investment will enhance security of access to petroleum products, improve affordability, and reinforce long-term supply stability for Uganda and the wider region,” stated Bateebe.
A Boost in Regional Cooperation.
Uganda’s participation in KPC’s IPO will boost the regional trade cooperation, particularly in Uganda.
As a landlocked country, 52 percent of KPC’s total revenue comes from transit exports, with Uganda accounting for about two-thirds of the total revenue.
Bateebe also states that the Ugandan government looks forward to working closely with the Kenyan government and other shareholders to advance KPC’s business objectives, enhance operational efficiency, and promote regional energy integration.
“This milestone further demonstrates Uganda’s commitment to deepening bilateral relations with Kenya and advancing regional integration under the East African Community (EAC) framework. Uganda remains committed to investing in strategic regional infrastructure that strengthens economic cooperation and shared prosperity,” said Irene Bateebe.
The move has also been criticized by Kenyans, stating that it’s an investment risk for the country.
“Uganda is effectively receiving a control premium. With valuation ranging from KES 6.8–11.3 and a base case of KES 9, pricing the IPO at KES 9 leaves no margin of safety, yet investors are taking on higher governance risk due to the control concessions,” argued FFP Consult Limited on X
Ugandan citizens have hailed the move, saying it’s the result of diplomatic efforts between the two countries.
“Now you see the power of diplomacy, drop the ball under fire, the blast is wholly equally shared, all the progress follows the recent claim of the Indian Ocean by President Museveni,” stated Ssebuliba on X.
Also Read: How to Buy KPC Shares on the Nairobi Stock Exchange
KPC Listing Of IPO
The announcement of allocation results will be conducted on 4 March 2026, followed by the electronic crediting of shares to investors’ CDS Accounts.
Unsuccessful applications will be processed of ref by 6th March 2026.
Listing and trading of KPC Shares at the Nairobi Securities Exchange (NSE) will start on March 9th, 2026.
Interested investors in the IPO can make applications before it is closed on February 24th through:
- Stockbrokers
- Investment banks
- Authorized selling agents, such as banks
- KPC IPO portal
- Dialing *483*816#
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