Kenya and Uganda have held high-level consultations on the ownership structure of the Kenya Pipeline Company (KPC) as the firm advances its initial public offering (IPO) and planned listing on the Nairobi Securities Exchange (NSE).

The talks, led by Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi, on January 29, 2026, focused on Kenya’s ongoing divestment of KPC through the IPO.

This comes amid the company’s strategic role in the regional petroleum supply chain and Uganda’s stake in the shared pipeline infrastructure.

“During the discussions in Entebbe, the CS noted that the engagement builds on earlier consultations & a shared understanding between the two governments regarding the KPC IPO, which has already been launched & is currently open for subscription, ahead of its eventual listing in the Nairobi Securities Exchange upon completion of the offer,” read the X post in part.

KPC divestment

The two-day engagement took place at Petroleum House in Entebbe, the headquarters of Uganda’s Ministry of Energy.

CS Mbadi held discussions with Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu, the Minister of Finance, Planning, and Economic Development, Matia Kasaija, and thePermanent Secretary for Energy, Irene P. Bateebe.

The Kenyan delegation included officials from the Kenya Privatisation Authority and the Kenya Pipeline Company, as well as Lawrence Kibet, Director General for Public Investment and Portfolio Management. Discussions centred on KPC’s ownership structure, the IPO process, and the implications of the divestment for regional energy security and infrastructure cooperation.

CS Mbadi noted that the engagement builds on earlier consultations and a shared understanding between the two governments on the KPC IPO, which has already been launched and is currently open for subscription, ahead of its eventual listing on the NSE upon completion of the offer.

Uganda’s stake in regional fuel supply

Ugandan leaders acknowledged Kenya’s decision to divest and list KPC, while underscoring Uganda’s substantial revenue contribution through the use of the pipeline infrastructure, which transports more than 95 per cent of the country’s petroleum imports.

Minister Nankabirwa welcomed the structured consultations, noting their importance in safeguarding fuel supply security following privatisation. Kasaija called for deeper economic relations between the two countries, saying enhanced cooperation should translate into tangible improvements in the well-being of citizens.

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, and consideration of a favourable shareholding arrangement, given the strategic nature of the infrastructure.

Kenya assures continued cooperation

CS Mbadi assured the Ugandan leadership that Kenya recognises Uganda’s strategic stake in the pipeline and its central role in regional energy security.

He said 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.

The CS explained that the divestment aims to strengthen KPC’s long-term sustainability, enhance operational efficiency, and enable access to long-term capital for expansion without increasing pressure on sovereign balance sheets.