Kenya Pipeline Company Plc (KPC) has reported a 13 per cent increase in annual profit after tax to KSh 11.58 billion (approximately Shs 320.8 billion), supported by higher petroleum volumes and improved operational efficiency as the company prepares to expand its regional footprint.
The Nairobi Securities Exchange-listed company, in which Uganda holds a 21.22 per cent equity stake, recorded a 9 per cent increase in revenue to KSh 43 billion (approximately Shs 1.19 trillion) in the financial year 2026, up from KSh 39.5 billion (approximately Shs 1.09 trillion) a year earlier. The growth was supported by a 7 per cent increase in domestic and transit petroleum volumes.
Profit before tax reached KSh 17.54 billion (approximately Shs 485.8 billion), according to results announced on Wednesday. The results represent the company's first full-year performance since its privatisation earlier this year.
Speaking at the release of the company's 2026 financial year results, KPC 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 increased by 34 per cent to KSh 17.39 billion (approximately Shs 481.7 billion), while cash and cash equivalents rose by 84.4 per cent to KSh 20.54 billion (approximately Shs 568.9 billion) at the end of the financial year.
KPC operates approximately 1,342 kilometres of pipeline infrastructure, supported by storage, pumping and loading facilities serving Kenya and neighbouring markets.
KPC is seeking to diversify beyond pipeline transportation and storage as it targets revenue of KSh 68 billion (approximately Shs 1.88 trillion) by the 2030 financial year, up from KSh 43 billion (approximately Shs 1.19 trillion) currently. Petroleum transportation and storage will, however, remain central to its business.
KPC Board Chairperson Faith Bett-Boinett said the board supported plans to establish an integrated petroleum trading hub at the Kenya Petroleum Refineries Limited (KPRL) facilities in Kipevu, Mombasa. The proposed development is intended to position the company to capture a greater share of regional petroleum trade.
The financial results event was also attended by Uganda's Ministry of Energy and Mineral Development Permanent Secretary and KPC board member, Irene Pauline Bateebe.
KPRL, a wholly owned subsidiary of KPC, is expected to provide a platform for expansion into petroleum storage, re-export, liquefied petroleum gas (LPG), liquefied natural gas (LNG), 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 that the company's assets were well positioned to strengthen national energy security, support growing regional demand and create additional revenue streams.
The proposed Kipevu hub is expected to offer transhipment, bulk-breaking, bunkering and re-export services to regional customers, potentially strengthening Kenya's role as a petroleum supply and distribution centre for East Africa.
KPC's expansion strategy comes as East Africa pursues new petroleum infrastructure developments, including the proposed Dangote East Africa Petroleum Refinery and Petrochemicals Special Economic Zone and upstream oil projects in South Lokichar.
The company also plans to extend its pipeline from Eldoret to Kampala and eventually Kigali, deepening its reach into landlocked regional markets.
Uganda's recently launched 320-million-litre Kampala Storage Terminal is expected to complement the company's regional growth ambitions by strengthening petroleum storage capacity and supporting supply to the domestic market.
The planned pipeline expansion could further reinforce the connection between Kenya's petroleum import infrastructure and Uganda's fuel distribution network, while providing a pathway for future expansion into Rwanda.
The expansion plans come as KPC strengthens its financial position. Total assets increased by 6 per cent to KSh 149 billion (approximately Shs 4.13 trillion), while shareholders' equity rose by 11 per cent to KSh 119 billion (approximately Shs 3.30 trillion).
Borrowings declined by 83 per cent to KSh 442.86 million (approximately Shs 12.3 billion), reflecting a substantial reduction in debt during the financial year.
The board approved a first and final dividend of KSh 5.9 billion (approximately Shs 163.4 billion), equivalent to KSh 0.32 per ordinary share, for the financial year.
The company said the share register would close on November 30.
With rising profitability, lower borrowings and plans to diversify its operations, KPC is positioning itself for further growth in the regional petroleum market. Its proposed pipeline extension to Uganda and eventual expansion to Rwanda could strengthen cross-border energy infrastructure and deepen its role in supplying petroleum products across East Africa.