Panic as Uganda buys controlling stake in Kenya’s national pipeline, seizing control over fuel prices, operations

• Uganda acquired a 20.15 per cent stake in Kenya Pipeline Company through UNOC.

• The deal gives Uganda influence over tariffs, leadership and restructuring decisions at KPC.

• Kenyans protested online, warning that Uganda could influence fuel prices in Kenya.

• The acquisition has already triggered disagreements within the KPC board over hiring a new managing director.

Kenyans on Tuesday took to social media to protest Uganda’s bumped up influence in the Kenya Pipeline Company (KPC) after Kampala acquired a 20.15 per cent stake in the firm.

Reports emerged this week that Uganda, as a majority shareholder in the company, now has direct control over setting fuel prices in the neighboring country.

Uganda also holds powers to influence key decisions at KPC, including the hiring or firing of the managing director, tariff reviews, dividend policy, restructuring decisions and board operations.

Kenyan media reported that Uganda additionally secured veto powers on dividend policy, authority over restructuring decisions and two seats on the KPC board.

The development has already triggered tensions inside the company. Reports indicate that the KPC board is currently divided over plans to recruit a new managing director following the recent resignation of Joe Sang.

Some board members reportedly argue that the recruitment process should wait until Uganda’s representatives officially join the board, as required under the IPO agreement.

KPC is one of East Africa’s most strategic energy firms. The company operates the petroleum pipeline network that transports refined fuel products from the port of Mombasa to depots across Kenya and neighbouring countries, including Uganda.

Many Kenyans expressed concern that Uganda could now influence fuel prices in Kenya through its role in tariff approvals.

“Imagine waking up one day and realising a neighbouring country can now partly influence fuel prices in Kenya. That is exactly what is happening through the KPC share sale,” wrote social media user Shola.

“And the scary part? Uganda owns only 20.15%, yet it reportedly got veto powers over pipeline tariffs. Meaning they can object when tariffs go down if it affects KPC revenue, and even keep prices up.”

“This is not a small company. This is strategic national infrastructure. How do you give this level of control away and expect Kenyans not to be alarmed? No serious country would allow this,” the post added.

Another user, Karan, questioned the arrangement.

“Are you saying that although KPC is physically in Kenya, power will be ideally in Uganda?” he wrote.

However, some Kenyans defended the deal and urged critics to view it as regional cooperation instead of a threat.

“Why do the majority of commentators view Uganda's investment negatively? On the positive side, Uganda may influence appointments of merit based managers as opposed to the current ethnic considerations. In the previous set up, one or two tribes dominated appointments,” wrote Lawrence Muga.

Uganda first announced the acquisition in February 2026 after concluding negotiations with the Kenyan government.

The talks were led by Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu, together with the Attorney General and a technical delegation.

Under the agreement, Uganda invested in KPC through the Uganda National Oil Company (UNOC), which now holds the shares on behalf of the Ugandan government.

Uganda described the acquisition as a strategic move aimed at securing long-term access to petroleum products while deepening regional energy cooperation.

By buying into KPC, Uganda moved from being only a transit customer into becoming part-owner of one of East Africa’s most important fuel infrastructure companies