UNOC Acquires Stake in Kenya Pipeline as East Africa Energy Investment Gains Momentum
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Uganda’s National Oil Company (UNOC) has acquired a 20.15% strategic stake in Kenya Pipeline Company (KPC) through its initial public offering, a landmark move positioning Kampala as a key player in East Africa’s energy infrastructure. Approved by Uganda’s Cabinet at a cost of over UGX 918 billion, the acquisition provides UNOC with board representation and significant voting rights within KPC, a critical conduit for Uganda’s petroleum imports.
The investment comes ahead of the Invest in African Energy (IAE) Forum, taking place in Paris on 22–23 April 2026, where Uganda and other African nations will present investment-ready projects and infrastructure to global financiers. UNOC’s stake reflects a broader shift among African NOCs toward active equity participation in energy infrastructure, moving beyond passive resource management to safeguard national supply chains while creating opportunities for private investment. The forum will provide a platform for governments, developers and investors to align on regulatory frameworks, financing strategies and cross-border partnerships that support East Africa’s energy growth.
The KPC investment coincides with a surge in upstream activity across East Africa. In Kenya’s South Lokichar Basin, Gulf Energy recently secured a $15 million onshore drilling rig from Great Wall Drilling Company in the UAE, ahead of commissioning and deployment for drilling by early July, as part of the project’s push toward first oil by December 2026. The acquisition demonstrates Gulf Energy’s early capital deployment and operational commitment to the estimated $6 billion South Lokichar project, which is projected to generate substantial fiscal revenue and economic activity once production begins.
Beyond Kenya, countries across East Africa are reopening licensing rounds, offering offshore and onshore exploration blocks, and introducing regulatory incentives designed to attract international and domestic investment. Uganda’s stake in KPC reflects a broader regional strategy: by combining active NOC participation with investor-friendly policies, governments aim to strengthen energy security, integrate infrastructure across borders and mobilize private capital for long-term sector development.
The transaction also highlights East Africa’s role as a strategic investment corridor. Midstream infrastructure – pipelines, storage and port facilities – is increasingly being structured for equity participation, giving both regional and global investors a tangible stake in project success. This trend complements ongoing upstream developments in Uganda, Kenya and Tanzania, where field development, licensing and commercialization timelines are accelerating.
As regional NOCs expand their footprint and investor interest grows, East Africa is entering a dynamic phase of energy development. The combination of strategic equity stakes, pipeline and storage infrastructure and renewed upstream projects illustrates a continent increasingly open to investment, integration and value-chain optimization. UNOC’s KPC stake – alongside projects like South Lokichar – represents both a regional success story and a window into the future of Africa’s energy sector, a narrative set to be further amplified at the IAE Forum in Paris.
IAE 2026 is an exclusive forum designed to connect African energy markets with global investors, serving as a key platform for deal-making in the lead-up to African Energy Week. Scheduled for April 22–23, 2026, in Paris, the event will provide delegates with two days of in-depth engagement with industry experts, project developers, investors and policymakers. For more information, visit www.invest-africa-energy.com. To sponsor or register as a delegate, please contact sales@energycapitalpower.co