Kenya Pipeline Company Pre-tax Profit Grows 8% to KShs 17.5 Billion
KPC Acting CEO Mr Pius Mwendwa
Listed petroleum products transport and storage solutions provider Kenya Pipeline Company Plc (KPC) [NSE: KPC] posted KShs 17.54 billion profit before tax in its full-year trading results, announced today.
The recently listed Company, in its first full-year results since its privatisation earlier this year, posted strong revenue growth, with Group revenue rising 9% to KShs 43 billion from KShs 39.5 billion in the previous financial year, supported by 7% growth in local and transit volumes.
Speaking at the firm’s 2026 financial year results release, KPC Plc Acting Managing Director Mr Pius Mwendwa said the Company’s profit after tax grew 13% to KShs 11.58 billion, up from KShs 10.24 billion in the previous financial year.
Mr Mwendwa attributed the strong growth momentum to sustained revenue growth, improved operational efficiency, product availability and stronger cash generation from the firm’s core business.
Backed by an extensive infrastructure network comprising approximately 1,342 kilometres of pipeline, along with strategically located storage, pumping, and loading facilities, KPC Plc, Mwendwa, disclosed a significant improvement in cash generation, with cash from operating activities rising 34% to KShs 17.39 billion in the period under review, with cash and cash equivalents at year-end rising by 84.4% to KShs 20.54 billion.
“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.
Speaking at the event, KPC Plc Chairperson Mrs Faith Bett-Boinett affirmed the firm’s board of directors’ support for ongoing business growth and diversification efforts, including the establishment of an integrated petroleum trading hub at the Kenya Petroleum Refineries Ltd (KPRL) facilities in Kipevu, Mombasa.
As a wholly owned subsidiary, KPRL’s strategic value to KPC Plc, she said, lies in its role as a scalable energy and logistics platform that strengthens KPC Plc’s long-term growth, resilience and regional influence.
“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,” Mrs Boinett said. She added, “KPC Plc assets are well positioned to enhance national energy security, support growing regional demand, and create potential additional future revenue streams.”
The Kipevu trading hub, she said, will provide world-class transhipment, bulk breaking, bunkering, and re-export services for the regional market. Strategically, the development of a trading hub fits in very well with emerging developments in this region, such as the new Dangote East Africa Petroleum Refinery and Petrochemicals Special Economic Zone (SEZ) and the upstream Gulf Energy South Lokichar projects, which provide strong impetus for KPC Plc.
The board, Mrs Boinett said provide the necessary support to ensure KPC diversifies its business and undertakes strategic expansion programmes, including expanding our current pipeline from Eldoret to Kampala and then to Kigali, among other projects. Notably, the recent launch of a 320 million-litre Kampala Storage Terminal by the government of Uganda will also accelerate the firm’s growth plans as it focuses on regional expansion.
Fresh from its Initial Public Offering (IPO) within the year under review, the Company’s balance sheet, he added, also strengthened, with total assets rising 6% to KShs 149 billion. Shareholders’ equity grew 11% to KShs 119 billion, while borrowings fell 83% to KShs 442.86 million, mainly because the Company reduced debt during the financial year.
Currently positioned as a critical energy infrastructure solutions provider enabling Kenya & regional energy security, the company, Mwendwa said, is pursuing a growth strategy to expand and diversify its revenue base.
As part of the strategy, KPC Plc revenue streams are expected to increase from the current KShs 43 billion to KShs 68 billion in FY 2030. He acknowledged that although implementation of the plan would result in an expanded revenue base, KPC Plc will still rely heavily on fossil fuel storage and transportation as its core business.
The KPC Plc Board has approved the payment of a first and final dividend of KShs 5.9 billion (KShs 0.32) per ordinary share for the Financial Year 2026, with the share register closing on 30th November.
