Uganda has strengthened its position in the regional energy sector after acquiring a stake in Kenya Pipeline Company following the company’s listing on the Nairobi Securities Exchange.

The milestone was marked by a bell-ringing ceremony in Nairobi on Tuesday, officially launching public trading of KPC shares after a successful Initial Public Offering (IPO).

Historic Listing Ceremony

The ceremony was officiated by William Ruto, who rang the bell to signal the start of trading on the exchange.

The listing attracted regional attention because Kenya Pipeline Company plays a critical role in East Africa’s petroleum supply chain. As a result, the IPO became a significant development for regional energy infrastructure and investment.

Uganda’s Strategic Participation

Uganda attended the ceremony through a high-level delegation led by Irene Bateebe. She represented Ruth Nankabirwa.

Also present was Proscovia Nabbanja.

During the event, officials announced that the Government of Uganda had acquired a 20.15 percent stake in Kenya Pipeline Company through the IPO.

According to energy officials, the investment strengthens regional cooperation in the petroleum sector.

Strengthening Regional Energy Security

Speaking at the ceremony, Bateebe explained that the investment reflects Uganda’s long-term energy strategy.

“This investment reflects Uganda’s long-term commitment to strengthening the regional petroleum supply chain and ensuring reliable access to fuel for our economy,” she said.

Uganda currently imports about 95 percent of its petroleum products through Kenya, totaling nearly 2.96 billion litres annually.

Most of this fuel moves through Kenya’s pipeline infrastructure from the Port of Mombasa before entering Uganda by road. Consequently, the pipeline network has become a crucial part of Uganda’s fuel supply system.

Existing Energy Cooperation

Regional energy collaboration has already been expanding.

In May 2024, Uganda National Oil Company signed a Transportation and Storage Agreement with Kenya Pipeline Company.

The agreement allows Uganda to use pipeline infrastructure transporting petroleum products from the Port of Mombasa to depots in western Kenya. From there, oil marketing companies transport the fuel into Uganda for nationwide distribution.

Deepening Regional Economic Ties

Nabbanja emphasized that Uganda’s participation in the IPO goes beyond financial returns.

“Our participation in the Kenya Pipeline Company IPO is a strategic investment that supports regional energy security while deepening economic ties between Uganda and Kenya,” she said.

Energy officials believe the investment will improve fuel supply stability for Uganda. Additionally, it is expected to strengthen economic cooperation as East African countries continue integrating their energy and infrastructure systems.