Kenya Pipeline Profit Rises 13% to US$89m

Kenya Pipeline Company, the fuel pipeline operator that Kenya’s government partly sold to investors earlier this year, raised its profit after tax by 13% to KSh 11.58 billion (about US$89 million) in the year to June. The board proposed a dividend of KSh 0.32 a share, about KSh 5.9 billion (about US$46 million) in total, and more than half of it would go to the governments of Kenya and Uganda.

The figures, the first full-year results since the listing, were presented in Nairobi on Wednesday, 14 October, according to results reported by the Kenyan news outlet Capital FM and the state broadcaster, the Kenya Broadcasting Corporation (KBC). Amounts in Kenyan shillings (KSh) are converted at 129.6 per US dollar, the 14 October 2026 rate from the market-data provider EODHD.

Revenue rose 9% to KSh 42.98 billion (about US$332 million) from KSh 39.50 billion (about US$305 million), and transport fees made up KSh 41.82 billion (about US$323 million) of it. Profit before tax rose to KSh 17.54 billion (about US$135 million) from KSh 16.17 billion (about US$125 million).

The board recommended a first and final dividend of KSh 0.32 per share, which shareholders must approve. Kenyan business outlets reported that investors on the register at the close of business on 30 November 2026 would qualify.

Acting managing director Pius Mwendwa said the company grew revenue and profit while improving cost efficiency, despite disruption linked to the Middle East crisis, KBC reported. Chairperson Faith Bett-Boinett said the company wants to expand into storage, re-export, liquefied petroleum gas, liquefied natural gas, biofuels and power generation.

Cash generated from operations rose 34% to KSh 17.39 billion (about US$134 million), and cash at the year-end rose 84% to KSh 20.54 billion (about US$158 million). Borrowings fell 83% to KSh 442.86 million (about US$3.4 million), which leaves the company with almost no borrowings.

Total assets rose 6% to KSh 149.27 billion (about US$1.15 billion), and shareholders’ equity rose 11% to KSh 119.33 billion (about US$921 million). Local and transit volumes rose 7%, Capital FM reported, and the Kenyan business site TechTrendsKE put total throughput at about 10.6 billion litres of petroleum products.

The dividend equals about half of the year’s profit, in line with the policy of paying out 50% of net earnings that Kenya Pipeline set out before its listing. At Monday’s closing price of KSh 9.02 (about 7 US cents), it implies a dividend yield of about 3.5%, by our calculation.

Uganda National Oil Company, Uganda’s state oil firm, holds 20.15% of the company, which it bought in the offer, according to its own statement. That stake would earn it about KSh 1.2 billion (about US$9 million) of the dividend, and the Kenyan government would receive roughly KSh 2 billion (about US$16 million), by our calculation.

Kenyan institutions took 7.45 billion shares and Kenyan retail investors about 465 million, according to the allocation results. Investors from outside East Africa took only about 3.9 million shares.

Kenya Pipeline runs about 1,342 kilometres of pipeline that carry fuel inland from the port of Mombasa, for Kenya and for its neighbours. About 65% of its transit volumes go to Uganda, which provides nearly 35% of its revenue, according to Uganda National Oil Company’s statement on its stake.

Uganda imports about 95% of its petroleum products through Kenya via the port of Mombasa, roughly 2.96 billion litres a year, the same statement says. TechTrendsKE reported that the company’s throughput also includes fuel for the Democratic Republic of Congo and South Sudan.

The company targets annual revenue of KSh 68 billion (about US$525 million) by its 2030 financial year. It is studying an extension of the pipeline from Eldoret to Kampala and Kigali, and a fuel trading hub at the Kipevu site in Mombasa, Capital FM reported.

For US investors in frontier markets, Kenya Pipeline offers a listed infrastructure business with almost no borrowings and a stated 50% payout policy. Its shares closed at KSh 9.02 on Monday, just above the KSh 9 offer price, according to EODHD and mystocks data.

Returns depend on regional fuel demand and on pipeline tariffs set by Kenya’s Energy and Petroleum Regulatory Authority, which approved a small increase from 15 July 2026, The Standard reported. The dividend is paid in shillings, and the currency has stayed at about 128 to 130 per US dollar this month, according to EODHD data.

Our report on who bought the shares in the IPO looks at how the sale was carried. Our story on the suspension of lawmaker Ndindi Nyoro over his pipeline remarks covers the political fight around it.

None of the published reports gave a dividend payment date or the date of the annual general meeting. They also gave no split between local and transit volumes.

We could not find the full financial statements on the company’s website at publication. The figures here therefore come from the results as reported by Kenyan media, and the annual report may refine them.

The results show higher profit, more cash and almost no borrowings seven months after the listing. Management said its funding plan to 2030 will be put to shareholders at the annual general meeting, TechTrendsKE reported.

The board proposed KSh 0.32 per share (about 0.25 US cents) for the year to June 2026, about KSh 5.9 billion (about US$46 million) in total. Shareholders must approve it, and no payment date has been given.

Profit after tax rose 13% to KSh 11.58 billion (about US$89 million) in the year to 30 June 2026. Revenue rose 9% to KSh 42.98 billion (about US$332 million).

Yes, its shares began trading on 10 March 2026 after the government sold 65% at KSh 9 a share (about 7 US cents). The government kept 35%, and Uganda National Oil Company holds 20.15%.

It carries fuel from the port of Mombasa to inland Kenya through about 1,342 kilometres of pipeline. It also serves neighbouring countries, and about 65% of its transit volumes go to Uganda.

Sources: Capital FM (14 October 2026) ; KBC (14 October 2026) ; Pulse Kenya (14 October 2026) ; TechTrendsKE (14 October 2026) ; Uganda National Oil Company, statement on its Kenya Pipeline stake ; African Markets, IPO results (5 March 2026) ; The Standard, pipeline tariff decision ; mystocks, KPC share data ; EODHD market data. All accessed 14 October 2026.

Editorial responsibility: Matthias Camenzind , Editor-in-Chief · Editorial standards · Report an error

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