Oil & Gas

Uganda has finalized negotiations with Kenya to participate in the upcoming IPO of the Kenya Pipeline Company (KPC), marking a strategic shift in regional energy cooperation. The investment, to be made through the Uganda National Oil Company (UNOC), is aimed at securing long-term access to petroleum products and strengthening Uganda’s position within East Africa’s fuel supply chain.

KPC operates over 1,700 kilometres of pipeline infrastructure transporting refined fuel from the port of Mombasa to inland markets, including Uganda, which relies heavily on this corridor for imports. With national fuel demand rising steadily and past disruptions causing price spikes, Uganda’s entry into KPC is designed to improve supply stability, affordability, and visibility over critical logistics infrastructure.

The move also aligns with broader regional integration efforts under the East African Community, including ongoing projects such as the East African Crude Oil Pipeline (EACOP). As Uganda prepares for first oil production, expected between 2026 and 2027, the government is seeking to secure both upstream and downstream infrastructure while it continues to depend on imported refined products.

While officials describe the investment as strategic, analysts note that the outcome will depend on share pricing, governance structure, and transparency around the deal. If successful, Uganda’s stake in KPC could shift its role from a passive fuel importer to an active stakeholder in the region’s petroleum logistics system.