President William Ruto has disclosed the details behind Uganda securing a 21 per cent stake in the Kenya Pipeline Company (KPC). The revelation came during the launch of the Naivasha-Kisumu-Malaba Standard Gauge Railway (SGR) in Kisumu County on Saturday, March 21, 2026.
Ruto explained that Uganda’s President Yoweri Museveni initially requested 50 per cent of KPC shares. This demand would have given Uganda a larger stake than Kenya itself, which retains 35 per cent of the company’s shares.
The negotiations were tense and required weeks of discussions between the two leaders. Ruto personally intervened to reach a compromise that balanced Kenya’s control with Uganda’s participation.
Ultimately, Uganda agreed to acquire 21 per cent of KPC shares. Museveni had argued that about 40 per cent of the pipeline’s transport volume is destined for Uganda, justifying a larger stake.
Ruto also indicated that Uganda could return to the market in the future to increase its shareholding. This opens the door for greater regional participation in KPC while maintaining Kenyan oversight.
Earlier in March, Treasury Cabinet Secretary John Mbadi revealed that local investors and Kenyans purchased 7.9 billion shares in the KPC initial public offer (IPO). Regional neighbors, including Uganda and Rwanda, acquired a combined 3.8 billion shares, forming a 21.22 per cent regional bloc stake.
Despite the regional participation, Kenya retains a controlling 35 per cent stake in the strategic company. Local investors account for approximately 67 per cent of the IPO, ensuring domestic influence remains dominant.
KPC was listed on the Nairobi Securities Exchange (NSE) on March 10 and is now the seventh most valuable stock, with a market capitalization of Ksh165 billion. President Ruto emphasized that careful negotiations preserved Kenya’s control while fostering East African cooperation.
This move reflects the government’s efforts to balance domestic control with regional integration. It also sets a precedent for future partnerships among East African Community (EAC) member states in strategic sectors.
The negotiations highlight the importance of diplomacy and personal engagement in high-stakes economic agreements. Ruto’s direct involvement was key to securing a deal that satisfies both Kenya’s interests and regional collaboration.