The Independent Uganda: You get the Truth we Pay the Price
Nairobi, Kenya | THE INDEPENDENT | Kenya’s President William Samoi Ruto on Tuesday finally rang the bell to commence trading in the Kenya Pipeline Company IPO, in which Uganda recently acquired shares.
The flagging off of the trading on Tuesday morning was attended by Ireen Batebe, the Permanent Secretary of the Ministry of Energy, accompanied by officials from Uganda National Oil Company (UNOC).
Some Kenyans had questioned the rationale of privatizing such a strategic asset, in which Uganda, through the Uganda National Oil Company (UNOC) securedng a 20.15% strategic shareholding. Ruto, in a meeting with the majority opposition party, the ODM, explained that the move to privatize Kenya Pipeline was part of the efforts to avoid unnecessary external debts, which were in the past blamed for the rising debt crisis in the sister East African Community country.
William Ruto defended the government’s decision to sell a stake in Kenya Pipeline Company, saying the proceeds will be channelled into a new infrastructure financing mechanism designed to expand the country’s development capacity while reducing reliance.
“This morning, Leo, I rang the bell at Nairobi’s Securities Exchange. And we collected 106 billion from the sale of our stake in the Kenya Pipeline IPO. And we are going to put that money in the National Infrastructure Fund,” he said.
“You know, let me explain to you. If we don’t have the National Infrastructure Fund, it gives us different leverage. It multiplies those 106 billion ten times.”
Ruto said the sale had drawn criticism from some quarters, with opponents describing it as an attempt to dispose of a strategic national asset. But he argued that the move reflects a broader strategy of monetising mature public assets to finance long-term development.
“When we discussed selling a stake in Kenya Pipeline, many people said, ‘You want to sell the family jewel,'” Ruto said. “We have done privatization before.”
Kenya’s cabinet last month approved the sale of a 65 per cent government stake, which will be leveraged to crowd in Ksh.1.2 trillion through the National Infrastructure Fund. The IPO offer, according to President William Ruto, attracted more than 70,000 individual Kenyan investors.
That, he said, broadened the ownership by allowing more citizens to participate directly in the growth of national enterprises.
He explained that the participation of governments of Uganda and Rwanda in the IPO through their investments strengthens the Kenya Pipeline Company as a strategic regional enterprise and reflects the deepening economic integration within the East African region.
Ruto said the Kenya Pipeline IPO and the establishment of the National Infrastructure Fund represent a shift in how Kenya finances major development projects.
By leveraging proceeds from state assets and attracting private capital, the government hopes to expand infrastructure investment while limiting additional borrowing and reducing pressure on taxpayers. Uganda took up investments into the Kenya Pipeline Company following a cabinet approval.
The government of Uganda, through the Uganda National Oil Company (UNOC), secured a 20.15% strategic shareholding in the company.
Uganda paid over 255.4 million dollars, or close to 92 billion shillings, in the IPO. The approval followed high-level engagements between the Government of Uganda and the Government of Kenya regarding KPC’s listing on the Nairobi Securities Exchange (NSE), where 65% of the company’s issued share capital was offered to local, regional, and international investors.
The Government of Kenya retained a 35% stake. Uganda imports approximately 95% of its petroleum products, nearly 2.96 billion litres annually, through Kenya via the Port of Mombasa and the KPC pipeline system.
With a monthly demand of about 240 million litres and an annual growth rate of around 7 percent, KPC’s infrastructure remains central to Uganda’s fuel supply chain, price stability, and broader economic resilience.
While the majority of imports are routed through Kenya, Uganda also supplements supply through the ports of Dar es Salaam and Tanga in Tanzania, reinforcing supply resilience and strengthening regional energy cooperation across East Africa.
Under the Petroleum Products Supply framework, UNOC is the sole importer of bulk petroleum products destined for the Ugandan market.
In May 2024, UNOC signed a transportation and storage agreement with KPC to utilise Kenya’s pipeline and storage infrastructure to transport fuel imports to depots in western Kenya for onwards distribution into Uganda.
Given that approximately 65% of transit volumes through the KPC system are destined for Uganda, contributing nearly 35% of KPC’s revenues, the government’s participation through UNOC represents both a strategic and commercial investment.
This acquisition reinforces Uganda’s commitment to strengthening bilateral cooperation with Kenya and advancing regional integration under the East African Community framework, while positioning the country to play a more direct role in a critical regional energy asset that underpins economic growth and long-term energy security.
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