Kenya Pipeline Company (KPC) has developed a fibre-optic business alongside its core petroleum transportation and storage operations, using infrastructure it already owns to serve telecommunications and network operators.
The KPC fibre-optic business provides wholesale connectivity infrastructure to companies that transport data across their networks, giving the state-owned company a presence in Kenya’s digital infrastructure market. Historical financial statements show the venture generated KSh349.9 million in income in FY2024/25, while KPC’s latest full-year results show total revenue of KSh42.98 billion and profit after tax of KSh11.6 billion for FY2025/26.
The fibre business uses the corridors occupied by KPC’s petroleum pipelines to accommodate telecommunications cables. Through this model, KPC leases dark fibre to customers that install their own transmission equipment and use the cable to carry data. It therefore operates at the infrastructure layer of the telecommunications market rather than selling retail internet packages directly to households.
The commercial rationale is straightforward: KPC can generate income from a physical corridor developed primarily for petroleum transportation while telecommunications companies gain access to fibre routes for their own connectivity services. The business gives KPC another source of revenue tied to the use of existing infrastructure, although its contribution remains separate from the company’s core petroleum transportation and storage activities.
How KPC built its fibre-optic business
KPC’s fibre venture draws on the physical footprint of its pipeline network. Fibre cables installed along these routes can connect locations served by the corridor, giving telecommunications operators access to infrastructure without having to build every section of a route independently. KPC’s wholesale model allows customers to lease the underlying fibre and use their own equipment to transmit data.
A key development came in September 2024, when KPC and Syokinet Solutions activated a fibre link between Mombasa and Nairobi with a stated capacity of 1.6 terabits per second (Tbps). The connection linked two of Kenya’s major economic centres and demonstrated how KPC’s existing right-of-way could support high-capacity data transmission alongside petroleum infrastructure.
The link’s stated capacity describes the volume of data it can potentially carry under the relevant technical configuration, rather than the amount of capacity customers are necessarily using. Commercial performance depends on the fibre capacity leased, customer demand and the agreements through which operators access the network.
KPC has also identified greater uptake of its fibre-optic infrastructure as part of its diversification agenda. This makes customer acquisition and utilisation important to the business’s growth, because available capacity creates revenue only when telecommunications and network companies contract for and use the infrastructure.
A customer base spanning telecom and network operators
KPC’s fibre-optic customer list includes Safaricom, Airtel, Wananchi Telecom and Jamii Telecommunications Limited, alongside infrastructure and connectivity companies such as Syokinet, SEACOM, Bayobab, Rain Communications Limited, BCS and Savanna Fiber Limited. The range of names places KPC within a broader wholesale connectivity ecosystem serving telecommunications operators and companies involved in network infrastructure.
These customers operate in different parts of the connectivity market. Mobile operators need infrastructure to link their networks and carry traffic, while fibre and wholesale connectivity providers can use leased routes as part of the services they offer other businesses. KPC’s fibre network can serve these requirements by providing access to cable infrastructure along its pipeline corridor.
The customer list also gives the venture a clearer commercial identity. KPC is not simply exploring whether its pipeline routes could support digital infrastructure; the company identifies multiple businesses as fibre customers. The list, however, does not establish the amount of capacity leased by each customer or the revenue generated from individual relationships.
For KPC, the opportunity lies in developing these relationships and attracting further demand for its infrastructure. The number of customers is one measure of the network’s reach, but recurring revenue and capacity utilisation are more direct indicators of how effectively the business converts its physical assets into commercial returns.
Fibre income grew before easing in FY2024/25
KPC’s historical financial statements show fibre-optic income rising from KSh156.6 million in FY2020/21 to KSh349.9 million in FY2024/25. The increase over the five-year period shows that the business has grown into a meaningful additional source of income, although annual revenue has not risen consistently.
| Financial year | Fibre-optic income |
|---|---|
| FY2020/21 | KSh156.6 million |
| FY2021/22 | KSh161.6 million |
| FY2022/23 | KSh263.7 million |
| FY2023/24 | KSh352.1 million |
| FY2024/25 | KSh349.9 million |
Income rose sharply in FY2022/23 and FY2023/24 before edging down from KSh352.1 million to KSh349.9 million in FY2024/25. The historical trend makes the next period important for assessing whether additional network use and customer demand can support further growth.
KPC’s FY2025/26 results provide the wider financial context. The company reported revenue of KSh42.98 billion, up 9%, and profit after tax of KSh11.6 billion, an increase of 13%. These are company-wide results; the historical fibre figures above are for FY2024/25 and should not be interpreted as the fibre business’s contribution to the latest year’s growth.
The distinction matters because fibre income represents a small portion of KPC’s overall revenue, while the business has its own customers, infrastructure requirements and commercial drivers. Its value to the company will depend on whether it can build recurring income and make better use of available capacity without requiring disproportionate capital expenditure.
Kenya’s broadband growth creates an opportunity
KPC’s fibre venture operates within a Kenyan connectivity market that continues to add fixed internet subscriptions. Communications Authority statistics reported by TechTrendsKE showed fixed internet subscriptions reaching 2.84 million by June 2026, with fibre connections rising to 1.57 million. The figures provide context for the demand facing network operators that need fibre infrastructure to connect customers and carry data between locations.
Growth in consumer fibre subscriptions does not automatically translate into higher revenue for KPC, because the company operates in the wholesale infrastructure market rather than the retail broadband market. The connection is indirect: as operators expand their services and networks, they may need additional routes, leased capacity or infrastructure to link customers and move traffic. KPC’s opportunity is to supply that infrastructure where its routes and available capacity meet those requirements.
The Mombasa-Nairobi link illustrates the relevance of connecting major commercial centres. Mombasa is an important international gateway, while Nairobi is a hub for financial services, technology companies and other businesses that depend on digital connectivity. High-capacity fibre links between the two cities can support wider domestic and regional networks, although the returns to KPC depend on the commercial capacity it leases to customers.
Fibre’s role in KPC’s diversification strategy
KPC’s 2025/26–2029/30 strategic plan identifies diversification and growth as a key pillar, including greater uptake of its fibre-optic infrastructure. The venture gives the company a way to participate in the digital economy by making commercial use of assets developed for its petroleum operations.
KPC’s IPO prospectus also identified a fibre-optic cable project expected to be completed in 2026, with revenue anticipated from that year. Additional infrastructure could broaden the routes and capacity available to customers, but the commercial benefit depends on the project’s delivery and the extent to which network operators take up the resulting capacity.
The fibre business is one of several areas through which KPC is seeking to broaden its activities beyond petroleum transport and storage. Management has also discussed a potential regional petroleum trading hub, including services such as storage-for-hire, bunkering and transshipment, although that proposal remains subject to evaluation. Fibre has a different customer base and revenue model, built around demand for telecommunications infrastructure.
KPC’s existing fibre customers and historical income show that the business has moved beyond a purely prospective idea. Its next growth opportunity rests on securing more wholesale demand, increasing the use of available capacity and translating Kenya’s need for digital connectivity into sustainable revenue from infrastructure the company already owns.
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