President William Ruto has disclosed details of high-level negotiations that led to Uganda acquiring a stake in the Kenya Pipeline Company (KPC), highlighting weeks of intense discussions with his Ugandan counterpart.
Speaking during the launch of the Naivasha-Kisumu Malaba Standard Gauge Railway (SGR) in Kisumu County, Ruto revealed that Yoweri Museveni had initially pushed for a 50% shareholding in KPC- a proposal that would have handed Uganda a larger stake than Kenya itself.
At the time, the Kenyan government held 35% of the company, making Museveni’s request a major sticking point in the negotiations.
Ruto said the talks required his direct intervention, with prolonged back-and-forth engagements eventually leading to a compromise. Uganda agreed to take up a 21% stake instead of the originally proposed 50%.
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Museveni had justified his demand by noting that about 40% of the pipeline’s transported fuel is destined for Uganda, arguing that this level of usage warranted a larger ownership share.
According to Ruto, the agreement leaves room for Uganda to increase its stake in future, signaling potential for deeper regional participation in KPC.
Earlier, on March 4, Treasury CS John Mbadi announced strong uptake of KPC shares during the Initial Public Offer (IPO). Kenyans and local institutional investors purchased 7.9 billion shares, while regional players- including Uganda and Rwanda- acquired a combined 3.8 billion shares, representing about 21.22%.
KPC, listed on the Nairobi Securities Exchange, has quickly risen to become the 7th most valuable stock on the market, with a market capitalisation of approximately Ksh165 billion- about 4.7% of the exchange’s equity market.
