President Yoweri Museveni of Uganda recently expressed a strong interest in acquiring a 50% stake in the Kenya Pipeline Company (KPC). President William Ruto confirmed this during the Africa We Build Summit in April 2026, stating that Museveni was willing to proceed regardless of the price.
Following the KPC Initial Public Offering (IPO) in March 2026, Uganda and Rwanda collectively purchased approximately 3.8 billion shares, with Uganda initially seeking a much larger stake before allocations were scaled back due to oversubscription.

Key Developments

• Reciprocal Investment: In response to Uganda's investment in Kenya's pipeline, President Ruto pledged that Kenya will invest significantly—potentially up to KSh 500 billion—in Uganda’s $4 billion oil refinery project.
• Strategic Motivation: Museveni’s interest is driven by a desire to secure Uganda's energy "lifeline" and transform regional infrastructure.
• Regional Cooperation: Both leaders emphasized that these joint investments aim to reduce the region's $90 billion annual petroleum import bill and enhance East African energy security.
• Privatization Goals: The sale of KPC shares is part of a broader Kenyan plan to raise KSh 130 billion for a Sovereign Wealth Fund and Infrastructure Fund to support national development without increasing debt.
  
  While long-term stability is the goal, regional fuel markets in April 2026 currently show a wide price gap:

Key Impacts on Regional Pricing

• Reduced Import Bills: Refined petroleum products currently make up 25% of Kenya's total import bill. Refining locally helps insulate the region from global Brent crude volatility and shipping disruptions in the Red Sea.
• Elimination of Middlemen: By securing a strategic stake in the Kenya Pipeline Company (KPC), Uganda gains veto power over pipeline tariffs. This helps control transit fees that previously drove Kampala's prices up to KSh 215 per litre.
• Price Stabilisation: President Museveni specifically pushed for this partnership to stabilise jet fuel supply and pricing, which he views as essential for sustaining the region’s tourism and export sectors.
• Currency Relief: Moving away from the "Government-to-Government" (G-to-G) import model and using local resources reduces the heavy demand for US dollars, which has historically weakened the Kenyan Shilling and inflated pump prices. 

Despite these future benefits, President Museveni recently made headlines for dismissing immediate complaints about high prices, advising those who cannot afford fuel for leisure travel to "stay at home"

The primary infrastructure linking the two countries is the proposed multi-product pipeline, which will extend from the Kenya Pipeline Company (KPC) hub in Eldoret to Kampala. This line will eventually connect to the $4 billion oil refinery located at Kabaale, Hoima.
Key Infrastructure Locations
1.Hoima Refinery (Kabaale Industrial Park): Located in Western Uganda near the Lake Albert oil fields. This site is the origin for the refined products that Museveni intends to export across East Africa.
2.Eldoret Hub (Kenya): The critical junction where the existing Kenyan pipeline system meets the proposed extension to Uganda.Kampala (Uganda): The major delivery point for refined products into the Ugandan market, intended to reduce reliance on road tankers.

Strategic Connection Points

• West Kenya Pipeline Extension: The KPC has been working on upgrading the line from Nairobi to Eldoret to increase capacity in preparation for the regional link.
• EACOP vs. Regional Pipeline: Note that while the East African Crude Oil Pipeline (EACOP) carries crude south to Tanzania for export, the Kenya-Uganda link is specifically for refined products (petrol, diesel, and jet fuel) to serve local