November 28, 2025 [Pipeline Technology Journal]- Kenya plans to sell a 65% stake in the state-owned Kenya Pipeline Company (KPC), with Uganda expected to become a significant investor, President William Ruto announced.

The move, disclosed during a groundbreaking ceremony for the $500 million Devki Group’s Mega Steel manufacturing plant in Tororo, aims to enhance regional integration and cooperation, following high-level negotiations between Kenya and Uganda.

President Ruto, alongside his Ugandan counterpart, President Yoweri Museveni, stated that the Kenyan government will retain a 35% strategic share while opening opportunities for Ugandans and other East Africans to buy into the company.

The decision comes after a recent public diplomatic disagreement where President Museveni expressed frustration over Uganda’s access to the vital Indian Ocean import/export route.

The divestiture plan, approved by the Kenyan parliament on October 2 to raise $769 million, is critical for Kenya, which is seeking to ease fiscal pressures noted by the World Bank.

KPC is scheduled to list on the Nairobi Securities Exchange (NSE), with an initial public offering (IPO) targeted for completion by the end of March 2026.

In a further sign of deepening ties, the two nations will co-invest in extending the Eldoret-Kampala petroleum pipeline to Rwanda and the Democratic Republic of Congo (DRC). They also plan to launch the Standard Gauge Railway (SGR) extension from Naivasha to Kampala in January 2026.

The move is seen as a way to reassure Uganda, which has been seeking alternative trade routes and investing in domestic oil capacity, despite its heavy reliance on Kenyan infrastructure. Uganda’s exports through the port of Mombasa accounted for 65.7% of the port’s total transit cargo in 2024.

However, the privatization process faces potential hurdles, with several court cases currently challenging the Privatization Act 2025 and raising issues regarding public participation in the sale of the national asset, which could delay the IPO.

Kenya is also planning to offload stakes in other state enterprises, including the National Oil Corporation and Safaricom, where South Africa’s Vodacom is reportedly in discussions to acquire a share.