Uganda to Co-Own Privatized Kenya Pipeline Company as Regional Integration Drive Gains Momentum

 

Brian

Kenya and Uganda are set to jointly own the Kenya Pipeline Company (KPC) following Nairobi’s decision to open up the state corporation to regional investors as part of an ongoing privatisation programme, President William Ruto has announced.

Speaking during an investment tour in Uganda, President Ruto said both governments had agreed on new frameworks for the shared ownership of strategic infrastructure after a recent joint ministerial meeting in Nairobi. Under the arrangement, Kenya will divest 65 percent of its stake in KPC, retaining 35 percent, while Uganda and other regional partners take up the remaining shares.

The transaction will be executed through an Initial Public Offering (IPO) on the Nairobi Securities Exchange, expected to be completed by March 31, 2026. Ruto said the public listing would guarantee transparency and open the door for broader regional participation.

“The government of Uganda is prepared to co-invest with us because KPC is not just a Kenyan facility but a regional facility,” he stated, emphasizing that the move would diversify earnings and strengthen shared ownership of critical energy infrastructure.

As part of the enhanced cooperation agenda, Ruto also revealed plans to extend the oil pipeline from Eldoret through Kampala to the borders of Rwanda and the Democratic Republic of Congo. The expansion is aimed at improving energy distribution, reducing logistical costs, and deepening economic collaboration across East Africa.

Ugandan President Yoweri Museveni, who hosted Ruto, welcomed the developments and confirmed his government’s readiness to advance regional transport connectivity. He pledged Uganda’s commitment to extending the Standard Gauge Railway (SGR) from Naivasha to Kampala, linking with the existing line at Malaba and eventually connecting to the DRC.

Ruto noted that expanding the rail network would enhance efficiency in the movement of goods, boost regional trade, and cement the longstanding economic ties between the two nations.

The initiatives mark a significant step in East Africa’s push for deeper integration, with both leaders framing the shared infrastructure projects as part of a broader strategy to promote economic resilience and interdependence.

Museveni praised Ruto for what he termed “visionary pan-Africanism,” saying the Kenyan leader’s approach to regional infrastructure development reflected a strong commitment to collective progress.