Entebbe: Kenya and Uganda have conducted high-level discussions regarding Kenya's ongoing divestment of the Kenya Pipeline Company (KPC) through an Initial Public Offering (IPO). This initiative aims to strengthen regional energy security and foster deeper economic ties between the two nations.
According to Kenya News Agency, John Mbadi, Cabinet Secretary for the National Treasury and Economic Planning, is in Uganda for a two-day visit to engage with the country's leadership about the IPO. The discussions highlight KPC's critical role in the regional petroleum supply chain and Uganda's strategic interest in the shared pipeline infrastructure.
During the visit, 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 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 at the National Treasury.
The discussions are part of ongoing bilateral consultations regarding KPC's ownership structure, the IPO process, and its impact on regional infrastructure cooperation and energy security. Mbadi indicated that these talks build on previous consultations and a mutual understanding between Kenya and Uganda on the KPC IPO, which is currently open for subscription and will eventually be listed on the Nairobi Securities Exchange.
Mbadi emphasized that the decision to list KPC aims to enhance the company's long-term sustainability, improve operational efficiency, and provide access to long-term capital for expansion, while protecting national and regional interests. Uganda's leadership acknowledged Kenya's divestment decision, highlighting Uganda's significant contribution to KPC's revenues, as over 95% of Uganda's petroleum imports are transported through the Kenyan pipeline network.
Uganda's Minister of Energy and Mineral Development welcomed the discussions, noting their importance in safeguarding fuel supply security following the privatisation of such a strategic asset. Mbadi assured Uganda of Kenya's commitment to protecting Uganda's energy security and economic interests as the KPC IPO advances. He noted that the divestment process is intended to strengthen KPC as a commercial entity and reinforce regional cooperation and shared management of critical infrastructure.
Uganda's Minister of Finance, Matia Kasaija, called for deeper economic relations between the two countries, stressing that enhanced cooperation should result in tangible benefits for citizens in both Kenya and Uganda. The Ugandan side expressed support for Kenya's reform agenda and sought assurances on continued pipeline access and recognition of Uganda's contribution to KPC's success.
Mbadi reiterated Kenya's recognition of Uganda's strategic role in the pipeline and regional energy security. He stated that Kenya has secured approvals to reduce its shareholding in KPC, broaden ownership through the IPO, and retain a strategic stake and regulatory oversight to protect national and regional interests. The divestment aims to reduce public financial pressure, strengthen corporate governance, and position KPC for future expansion without burdening sovereign balance sheets.
Listing KPC is expected to support investments in pipeline expansion, modernisation, and storage infrastructure, enhance fuel supply resilience, stabilise the regional petroleum market, and develop strategic fuel reserves. Mbadi conveyed greetings from President William Ruto and reaffirmed the strong bilateral relations between Kenya and Uganda, citing long-standing trade ties and collaboration on shared infrastructure.
He highlighted KPC's role as a cornerstone of East Africa's energy architecture and its successful listing would contribute to a more integrated, resilient, and competitive regional energy market. Mbadi stressed the importance of continued government-to-government engagement with Uganda, noting that the KPC IPO presents an opportunity to deepen economic cooperation and co-manage a critical regional asset for future growth and prosperity.
Also present at the discussions was Kenya's High Commissioner to Uganda, H.E. Joash Maangi.