Kenya Pipeline allayed fears that the plans by Uganda to build an oil refinery posed a threat to the company’s regional expansion growth.
After more than ten years of delays, Uganda National Oil Company (UNOC) and Dubai-based investment firm Alpha MBM Investments LLC have inked a significant agreement on the $4 billion (Sh516 billion) project, which is now moving towards a Final Investment Decision that is anticipated by July of this year.
When finished, the refinery in Albertine Graben would be able to process up to 60,000 barrels of crude oil per day. Uganda is eager to reduce its $2 billion (Sh 258 billion) annual petroleum product import bill, which is mostly imported through Kenya.
According to the Uganda Investment Authority, the UAE company will own 60% of the shares, with UNOC keeping 40%.
Kampala is presenting the agreement as proof of restored investor trust in the nation’s oil industry, which comes after years of fruitless negotiations with prior partners.
Kenya Pipeline Company’s (KPC) regional expansion strategy, which includes the planned Eldoret-Kampala-Kigali refined petroleum products pipeline project, which aims to ease product movement, would be seriously jeopardised if the refinery’s anticipated completion in 2029–2030 comes to pass.
However, in the midst of the firm’s planned regional development, Joe Sang, managing director of Kenya Pipeline, has allayed concerns that Uganda’s action will have an impact on Kenya’s petroleum industry, even as the sale of the government’s part in the company opens to the public and investors.
“The Uganda refinery is not a threat; it will take up to 15 years for Uganda to start refining oil,” Kenya Pipeline managing director Joe Sang said during a media briefing on the Initial Public Offer (IPO) in Nairobi.
Through its first public offering (IPO), Kenya Pipeline is offering 11.81 billion ordinary shares for sale at a price of Sh9 per share, or 65% of the firm. The promotion will expire on February 19 at 5 p.m. after opening on January 19, 2026 at 9 a.m.