Kenya Pipeline Company Profit Rises 8% to KSh17.54 Billion in 2026

Kenya Pipeline Company Plc (KPC) has reported an 8% increase in profit before tax to KSh17.54 billion for the 2026 financial year, as group revenue rose 9% to KSh43 billion.

The petroleum transportation and storage company said revenue increased from KSh39.5 billion in the previous financial year, supported by a 7% growth in local and transit volumes.

The results mark the company’s first full-year financial performance since its privatisation earlier in 2026. Profit after tax grew 13% to KSh11.58 billion, up from KSh10.24 billion recorded in the previous financial year.

Speaking during the release of the results, Acting Managing Director Pius Mwendwa attributed the performance to sustained revenue growth, improved 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.

The company also recorded improved cash generation, with cash from operating activities increasing 34% to KSh17.39 billion. Cash and cash equivalents stood at KSh20.54 billion at the end of the financial year, representing an 84.4% increase.

KPC’s total assets grew 6% to KSh149 billion, while shareholders’ equity rose 11% to KSh119 billion. Borrowings declined by 83% to KSh442.86 million, largely reflecting debt reduction during the period.

The company’s board has recommended a first and final dividend payout of KSh5.9 billion, equivalent to KSh0.32 per ordinary share, for the 2026 financial year. The share register will close on November 30.

Beyond its core pipeline transportation and storage operations, KPC is pursuing a strategy to diversify revenue streams and expand its regional presence. The company aims to increase annual revenue from KSh43 billion to KSh68 billion by the 2030 financial year.

A key component of the strategy is the planned development of an integrated petroleum trading hub at the Kenya Petroleum Refineries Limited (KPRL) facilities in Kipevu, Mombasa.

KPC Chairperson Faith Bett-Boinett said the board supported the company’s growth and diversification plans, noting that KPRL could provide a platform for expansion into additional energy and logistics services.

“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 positioned to strengthen national energy security, serve growing regional demand and create additional revenue streams.

The proposed Kipevu trading hub is expected to offer transhipment, bulk-breaking, bunkering and re-export services to regional petroleum markets. KPC is also pursuing plans to expand its pipeline network from Eldoret to Kampala and eventually Kigali.

The company said developments in the regional energy sector, including the launch of a 320-million-litre Kampala Storage Terminal in Uganda, could support its regional expansion ambitions.