Uganda to Buy Stake in Kenyan Parastatal After Deal With Ruto

Kenya and Uganda are set to jointly own shares in the Kenya Pipeline Company (KPC) once the ongoing privatisation process is completed, President William Ruto announced on Sunday, November 23, 2025.

Speaking during an investment tour in Uganda, Ruto said the Kenyan government plans to publicly list KPC shares on the Nairobi Securities Exchange.

This move will allow Uganda, alongside other regional investors, to acquire a stake in the company as part of a wider strategy to boost regional collaboration and investment.

“I want to thank you, Mr President, for agreeing to work with us. The ministers were in Nairobi last week, and I have given guidance on the need for Kenya and Uganda, both public and private sectors, to jointly own the Kenya Pipeline Company,” Ruto said.

According to the President, Kenya will divest 65 per cent of its shares while retaining 35 per cent. He highlighted that the government of Uganda is ready to co-invest, noting that KPC serves not just Kenya but the broader region.

“Kenya Pipeline Company is not just a Kenyan facility but a regional facility. Uganda is prepared to co-invest with us, and we encourage other East Africans to participate when shares are publicly listed,” Ruto said.

He added that wider regional investment would diversify earnings and strengthen shared ownership of strategic infrastructure.

Ruto also revealed that another joint project is underway to extend the pipeline from Eldoret through Kampala to the border of Rwanda and the Democratic Republic of Congo (DRC). The plan allows both governments to co-invest in extending the line to improve regional access and efficiency.

In addition, the President confirmed that the Standard Gauge Railway (SGR) will be extended from Naivasha to Kampala.

“In January, we will launch the SGR extension from Naivasha to Kampala and onward to connect with the line from Malaba to Kampala and to DRC. This will enhance transport, logistics, and regional integration,” Ruto said.

The announcement comes shortly after comments by Ugandan President Yoweri Museveni regarding territorial and maritime access, which sparked discussions in both countries.

Museveni had raised concerns about landlocked East African nations’ access to the Indian Ocean, emphasizing Uganda’s economic and defence needs.

Ruto reassured the public that both governments remain committed to working together, dismissing media reports that misrepresented Museveni’s remarks.

He said the Ugandan president’s statements were meant to promote regional connectivity and collaboration, not create conflict.

The privatisation of KPC is expected to be completed through an Initial Public Offering (IPO) by March 31, 2026.

With Kenya selling 65 per cent of its shares, the process has already received parliamentary approval in October 2025, setting the stage for regional and private sector participation.