Kenya and Uganda will jointly own shares in the Kenya Pipeline Company once the privatisation process is completed, President William Ruto has announced.

Speaking on Sunday during an investment tour in Uganda, Ruto announced that the government will publicly list KPC shares on the Nairobi Securities Exchange, allowing Uganda to invest in the company as part of a broader regional investment plan.

He reassured that there was no cause for alarm, noting that Kenya and Uganda had already ratified new cooperation frameworks during a joint ministerial meeting in Nairobi last week, with both governments having agreed to jointly own the key infrastructure that had previously been slated for privatisation.

''I want to thank you, Mr President, for agreeing to work with us. The ministers were in Nairobi last week and I have given the necessary guidance on the need for Uganda and Kenya, both public and private, to jointly own the Kenya Pipeline Company (KPC),'' Ruto said.

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He added that Kenya would proceed with divesting a significant portion of its shares. According to Ruto, the government of Kenya will be divesting 65 per cent of its stake, opening the door for regional investors.

''The government of Kenya will be divesting 65 per cent, and I want to tell you that the government of Uganda is prepared to co-invest with us because KPC is not just a Kenyan facility but also a regional facility,'' he said.

Ruto encouraged Ugandans and other East Africans to invest once the shares are publicly listed, saying wider participation would diversify earnings and strengthen shared ownership of strategic assets.

At the same time, the President disclosed that another joint investment in the pipeline from Eldoret through Kampala to the border of Rwanda and the DRC is already at an advanced stage, where Kenya has approved a plan allowing both governments to co-invest in extending the line to better serve the region.

Additionally, Ruto announced that the government will be launching the extension of the Standard Gauge Railway from Naivasha to Kampala to strengthen the collaboration between the two nations in infrastructure development. 

''In January, we will be launching the extension of the SGR from Naivasha to Kampala and onward to join the line from Malaba to Kampala and onward to DRC. The two governments will coordinate this to improve transport and logistics in a bid to enhance regional integration,'' Ruto said.

The remarks come days after Ugandan President Yoweri Museveni’s comments on territorial and maritime access triggered debate in both countries. Museveni had warned of a potential conflict with Kenya if landlocked East African nations continued to face barriers to the Indian Ocean.

Museveni, in an interview with his nation's state broadcaster aired earlier this month, highlighted Uganda’s economic and defence needs, questioning how the country could efficiently export goods without guaranteed sea access.  

Ruto maintained that both governments remain committed to working together while faulting sections of the media for misrepresenting Museveni’s remarks. He said there was no wrongdoing in the Ugandan leader’s comments, which were aimed at promoting regional connectivity and integration.

The privatisation of KPC is underway through an Initial Public Offering expected to be completed by March 31, 2026. Kenya will sell 65 per cent of its shares and retain 35 per cent, with parliamentary approval for the process having been secured in October 2025.