Kenya Pipeline Company (KPC) Plc, which listed on the Nairobi Securities Exchange (NSE) in March 2026 after the government sold a 65 per cent stake through an initial public offering, is seeking to grow its share of Rwanda’s petroleum market through a new fuel supply arrangement and plans to expand its transportation network across the region. Speaking during an investor roadshow in Kigali on Monday, November 2, Pius Mwendwa, KPC’s Acting Managing Director and CEO, said the company plans to increase pipeline capacity along the Mombasa-Nairobi and Nairobi-western Kenya routes over the next two to three years. ALSO READ: Rwanda-Kenya fuel deal to help shield economy from global shocks - Minister The upgrades could involve an additional pipeline and more pumping stations to improve the movement of petroleum products. The proposed development forms part of the Eldoret–Kampala–Kigali (EKK) Pipeline Project, which envisages a pipeline connection from Eldoret in Kenya through Kampala in Uganda to Kigali in Rwanda, supported by associated pumping infrastructure. KPC operates a 1,342-kilometre pipeline network linking the Port of Mombasa to western Kenya, where fuel is loaded onto trucks or, for some Rwanda-bound cargo, onto lake vessels at the Kisumu Oil Jetty, for delivery to Rwanda and other regional markets. It transported 10.6 billion litres of petroleum products during the 2025/2026 financial year and has active storage capacity of approximately 1.14 billion litres. The network has capacity to move about 14 billion litres a year. “We have also been discussing and thinking on doing a pipeline, extending from Eldoret to Malaba, and then from Malaba to Kampala, and potentially in future to Kigali, so that we can stop having fuel being transported by trucks,” Mwendwa said. Mwendwa said a pipeline would lower costs, reduce environmental impact and guarantee supply. “We have first to do from Kenya, that is Eldoret, to Kampala, and then the other leg from Kampala to Kigali. I think the discussions are still going on and once that is firmed up, we'll know how far that will stretch,” he added. ALSO READ: Rwanda-Kenya energy deal: 40,000-tonne maiden petroleum cargo arrives at Mombasa KPC eyes Rwanda growth following new fuel supply deal KPC's plans come as it begins handling petroleum products destined for Rwanda through the Northern Corridor. The first cargo under the arrangement, carrying 40,000 tonnes of refined petroleum products for Rwanda National Energy Company (RNEC), arrived at KPC’s Kipevu Oil Terminal 2 in Mombasa on September 29 aboard the MT Sea Wolf. The arrangement is backed by a framework signed on June 29 that includes a memorandum of understanding between the governments of Rwanda and Kenya, a tripartite agreement involving Rwanda National Energy Company, and a transport and storage agreement between RNEC and KPC. KPC has also extended its storage window for RNEC products to 90 days, up from the standard 35 days offered to other oil marketers. KPC's figures show that it served 9.3 per cent of Rwanda’s petroleum market based on the previous year's figures. Rwandan pension funds were also among the regional investors that bought into KPC’s IPO. “Given our pricing, given the efficiencies of our route, we think this [Rwanda] is a market which will benefit from the efficiencies that are accrued from Kenya Pipeline,” Mwendwa said. “We have to look beyond the tariff. We look at efficiencies, and we look at how we can be able to eliminate those barriers that make movement of product within the different jurisdictions a pain,” he added. ALSO READ: Rwanda, Kenya sign deal for petroleum importation through Northern Corridor According to Anthony Ndegwa, the company's acting general manager for finance, KPC's revenue grew by 9 per cent to KSh42.98 billion in the 2025/2026 financial year, supported by a 7 per cent increase in local and transit volumes and a 27 per cent rise in storage activity. Profit after tax rose 13 per cent to KSh11.58 billion. These were KPC’s first full-year results since its listing. KPC sees potential to expand its business in Rwanda following the introduction of the government-to-government fuel supply arrangement. “With the government to government coming on board, Rwanda is a number that you are looking for to drive that growth,” he said. Dangote stake and new storage plans On October 21, Nigerian industrialist Aliko Dangote confirmed that his group had acquired a 24.76 per cent stake in KPC, a block of about 4.5 billion shares worth KSh42.5 billion that was sold by Kenyan public entities and changed hands on the NSE on October 19. Dangote has also said he plans to invest $1.5 billion in expanding the company's pipeline network. The deal followed the September 30 groundbreaking of Dangote’s proposed 700,000-barrel-per-day refinery at Lamu. “Fuel now will be very close at home. Once they refine, fuel will be supplied from a very close proximity. So that cuts on transportation costs, cuts on premiums, and that brings down the cost of fuel,” Mwendwa said. KPC is also considering a regional oil and gas trading and logistics hub at Kipevu in Mombasa, with a proposed investment of more than KSh35 billion (approximately $270 million). The project could add about 1.1 billion litres of storage capacity, potentially doubling the company's current capacity. It would provide storage for petroleum companies and offer services such as bunkering and transshipment. “We are looking at doing storage, huge storage facilities in Mombasa. Looking at doubling probably the storage capacity we have currently at KPC, about another 1.1 billion litres.” Meanwhile, KPC’s board has recommended a first and final dividend of KSh0.32 per share, about KSh5.9 billion in total, in line with its policy of paying out 50 per cent of earnings. Shareholders on the register as at November 30 will qualify. The proposal is expected to be presented to shareholders at the company's annual general meeting in early December.
