KENYA, Nairobi (UGNEWSLINE) – Kenya Pipeline Company Plc has reported a 13% increase in annual profit after tax to KSh11.58 billion ($89.3 million), as higher petroleum volumes and improved operating efficiency boosted earnings ahead of plans to expand its regional footprint.
The Nairobi Securities Exchange listed company, in which Uganda holds a 21.22% equity stake, recorded revenue growth of 9% to KSh43 billion ($331.5 million) in the financial year 2026, from KSh39.5 billion ($304.5 million) a year earlier, supported by a 7% increase in domestic and transit volumes.
Profit before tax reached KSh17.54 billion ($135.2 million), according to results announced on Wednesday. The figures represent the company’s first full-year results since its privatisation earlier this year.
KPC Plc Acting Managing Director, Pius Mwendwa , attributed the performance to sustained revenue growth, operational efficiency, product availability and stronger cash generation from the company’s core business.
“Despite a difficult operating environment characterised by global petroleum prices and supply volatility due to the Middle East crisis, KPC Plc has managed to grow its top line and bottom line while improving operating cost efficiencies,” Mwendwa said.
Cash generated from operating activities rose 34% to KSh17.39 billion ($134.1 million), while cash and cash equivalents increased 84.4% to KSh20.54 billion ($158.4 million) at the end of the financial year.
The company operates about 1,342 kilometres of pipeline, supported by storage, pumping and loading facilities serving Kenya and neighbouring markets.
Beyond pipeline transportation
KPC Plc is seeking to diversify beyond pipeline transportation and storage as it targets revenue of KSh68 billion ($524.3 million) by the financial year 2030, from KSh43 billion currently. Petroleum storage and transportation will, however, remain central to its business.
The company’s chairperson Faith Bett-Boinett said the board supported plans to establish an integrated petroleum trading hub at the Kenya Petroleum Refineries Ltd facilities in Kipevu, Mombasa, positioning the company to capture more business from regional petroleum trade.
KPRL, a wholly owned subsidiary of KPC, is expected to provide a platform for expansion into storage, re-export, liquefied petroleum gas, liquefied natural gas, biofuels, power generation and third-party petroleum trading.
“KPC Plc, through the resources at its disposal, is working to unlock untapped potential that enables diversification beyond pipeline operations into storage, re-export, Liquid Petroleum Gas (LPG), Liquid Natural Gas (LNG), biofuels, power generation and support of third-party petroleum market trading operations,” Bett-Boinett said.
She added, “KPC Plc assets are well positioned to enhance national energy security, support growing regional demand, and create potential additional future revenue streams.”
The proposed Kipevu hub will offer transhipment, bulk breaking, bunkering and re-export services to regional customers.
New investments
The development comes as East Africa pursues new petroleum infrastructure, including the proposed Dangote East Africa Petroleum Refinery and Petrochemicals Special Economic Zone and upstream projects in South Lokichar.
KPC Plc also plans to expand its pipeline from Eldoret to Kampala and eventually Kigali, deepening its reach into landlocked markets. Uganda’s recently launched 320 million-litre Kampala Storage Terminal is expected to support the company’s regional growth ambitions.
The expansion plans come as KPC strengthens its balance sheet. Total assets rose 6% to KSh149 billion ($1.15 billion), while shareholders’ equity increased 11% to KSh119 billion ($917.5 million). Borrowings fell 83% to KSh442.86 million ($3.4 million), reflecting debt reduction during the year.
The board approved a first and final dividend of KSh5.9 billion ($45.5 million), equivalent to KSh0.32 per ordinary share, for the financial year. The share register will close on November 30.
