Kenya is opening up a majority stake in the company that runs the pipeline supplying more than 90% of Uganda’s fuel. Nairobi is inviting Ugandan investors to buy into the business through an initial public offering, positioning it as a regional partnership in critical energy infrastructure. The move comes as East Africa faces rising fuel costs, supply chain uncertainty, and growing economic integration.
In a move described as a historic first for East Africa’s capital markets, the Government of Kenya has launched an Initial Public Offering (IPO) for a majority stake in the Kenya Pipeline Company (KPC), with formal invitations extended to investors in Uganda and the wider region. The offer, opened on 19 January 2026 and closing on 19 February 2026, represents one of the largest public share issues in Kenya’s history. The Kenya Pipeline Company (KPC) initial public offering (IPO), involves the Kenyan government selling 65% of its shares to raise approximately KSh 106.3 billion . The offer includes specific quotas for regional investors, with 20% reserved for EAC citizens, including Ugandans, and 15% for regional fuel distributors.
Excerpt 1
MUMBA KALIFUNGWA
Chief Executive Officer, Stanbic Bank
Uganda
« The capital markets – I do strongly believe, are a great avenue to support the growth of financial markets – not only in Uganda but across the region and across the continent, so highly supportive of any institution that wants to raise capital using capital and debt markets. »
In a landmark outreach to Uganda, Kenya has set aside a significant allocation of shares for regional investors, particularly those from East African Community (EAC) member states. Cabinet Secretary for the National Treasury, John Mbadi, highlighted Uganda’s central role in the regional energy supply chain, noting that more than 90 % of Uganda’s petroleum imports are transported through KPC’s pipeline infrastructure from the Port of Mombasa.
Excerpt 2
MUMBA KALIFUNGWA
Chief Executive Officer, Stanbic Bank
Uganda
« When one wants to invest in an IPO, I think some of the things that are critical is, what is your investment appetite – what is your risk appetite – what sort of pricing are you looking at – how long are you looking to invest for – so, when an IPO has been issued, those are some of the considerations that one would look at. »
The opening of the Kenya Pipeline Company IPO to Ugandan and regional investors represents an important milestone in East Africa’s financial integration and infrastructure investment landscape. As optimism surrounds the IPO’s regional integration potential, analysts and some Ugandan investors have expressed scepticism over the valuation suggesting that the KSh 9 offer price may be higher than intrinsic value estimates, which could temper near-term investor appetite.
