Kenya and Uganda have held high-level consultations on Kenya’s ongoing divestment of the Kenya Pipeline Company (KPC) through an Initial Public Offering (IPO), in a move aimed at safeguarding regional energy security and deepening economic cooperation between the two countries.
Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi, is in Uganda for a two-day engagement with the country’s leadership to discuss the IPO, recognising KPC’s central role in the regional petroleum supply chain and Uganda’s strategic stake in the shared pipeline infrastructure.
During the visit, CS Mbadi held talks with Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu; Minister of Finance, Planning and Economic Development, Matia Kasaija; and Principal Secretary for Energy, Eng. Irene P. Bateebe, at Petroleum House, the headquarters of Uganda’s Ministry of Energy in Entebbe.
The CS led a Kenyan delegation comprising officials from the Kenya Privatisation Authority and the Kenya Pipeline Company, including the Director General for Public Investment and Portfolio Management at the National Treasury, Mr. Lawrence Kibet.
The engagement formed part of ongoing bilateral consultations on KPC’s ownership structure, the IPO process, and its implications for regional infrastructure cooperation and energy security.
CS Mbadi noted that the engagement builds on earlier consultations and a shared understanding between Kenya and Uganda regarding the KPC IPO, which has already been launched and is currently open for subscription ahead of its eventual listing at the Nairobi Securities Exchange upon completion of the offer.
He emphasised that the decision to list KPC was guided by the need to strengthen the company’s long-term sustainability, improve operational efficiency, and enable it to access long-term capital to support expansion, while safeguarding national and regional interests.
The Ugandan leadership acknowledged Kenya’s decision to divest and list KPC, while underscoring Uganda’s significant contribution to the company’s revenues through utilisation of the pipeline infrastructure. More than 95 per cent of Uganda’s petroleum imports are transported through the Kenyan pipeline network.
Uganda’s Minister of Energy and Mineral Development welcomed the structured consultations, noting that they were critical in ensuring that fuel supply security is safeguarded following the privatisation of such a strategic regional asset.
Speaking during the engagement, CS Mbadi assured the Ugandan leadership that Kenya remains fully committed to protecting Uganda’s energy security and economic interests as the KPC IPO progresses.
He said the divestment process is designed not only to strengthen KPC as a commercial entity but also to reinforce regional cooperation and shared stewardship of vital infrastructure.
“The Government of Kenya recognises the strategic importance of the pipeline to Uganda and the wider region. Our commitment is to ensure that this process strengthens, rather than undermines, regional energy security and economic cooperation,” Mbadi said.
On his part, Uganda’s Minister of Finance, Planning and Economic Development, Matia Kasaija, called for deeper economic relations between the two countries, emphasising that enhanced cooperation should translate into tangible improvements in the wellbeing of citizens in both Kenya and Uganda.
While expressing support for Kenya’s reform agenda, the Ugandan side sought assurances on continued access to the pipeline, recognition of Uganda’s long-standing contribution to KPC’s commercial success, and consideration of a favourable shareholding arrangement given the strategic nature of the infrastructure.
In response, CS Mbadi reiterated that Kenya fully recognises Uganda’s strategic stake in the pipeline and its central role in regional petroleum supply and energy security.
“The Government of Kenya has secured all requisite approvals to reduce its shareholding in KPC and broaden ownership through the IPO, while retaining a strategic stake and regulatory oversight to safeguard national and regional interests,” he said.
He explained that the divestment is intended to reduce pressure on the public purse, strengthen corporate governance, and position KPC to finance future expansion without increasing the burden on sovereign balance sheets.
The CS added that listing KPC will support strategic investments in pipeline expansion, modernisation and storage infrastructure, enhance resilience of fuel supply, stabilise the regional petroleum market, and facilitate the development of strategic fuel reserves.
Conveying greetings from President William Ruto, CS Mbadi reaffirmed the long-standing bilateral relations between Kenya and Uganda, noting that cooperation between the two countries dates back to the pre-independence period.
He cited strong trade ties and collaboration in shared infrastructure, including the regional pipeline network, railways and port systems, saying these assets have enhanced competitiveness, reduced the cost of doing business, and strengthened access to regional and international markets.
The CS noted that KPC remains a cornerstone of East Africa’s energy architecture and that its successful listing would contribute to a more integrated, resilient and competitive regional energy market.
He further reiterated Kenya’s commitment to continued government-to-government engagement with Uganda, stressing that the KPC IPO presents an opportunity to deepen economic cooperation and jointly steward a critical regional asset into its next phase of growth and shared prosperity.
Also present at the engagement was Kenya’s High Commissioner to Uganda, H.E. Joash Maangi.
By Michael Omondi
