Kenya Pipeline Company (KPC) shareholders will receive Sh5.9 billion in dividends after the recently listed petroleum infrastructure firm reported a 13.1 per cent increase in net profit for the year ended June 2026.
The growth is buoyed by higher fuel volumes and improved operational efficiency.
The company’s profit after tax rose to Sh11.58 billion from Sh10.24 billion in the previous financial year, while revenue grew nine per cent to Sh43 billion from Sh39.5 billion, reflecting a seven per cent increase in local and transit petroleum volumes.
The board has approved a first and final dividend of Sh0.32 per share, signalling its capacity to reward investors following its initial public offering (IPO) earlier this year.
The results mark KPC’s first full-year performance since its partial privatisation, placing greater focus on its ability to sustain earnings growth, improve shareholder returns and unlock value from its extensive energy infrastructure.
Acting managing director Pius Mwendwa said the company had strengthened its financial position despite volatility in global petroleum prices and supply disruptions linked to tensions in the Middle East.
“We have managed to grow our top line and bottom line while improving operating cost efficiencies,” he said.
KPC’s cash generation improved significantly during the period, with cash from operating activities rising 34 per cent to Sh17.39 billion.
Cash and cash equivalents increased 84.4 per cent to Sh20.54 billion, providing the company with greater financial flexibility to support expansion.
Its balance sheet also strengthened, with total assets increasing six per cent to Sh149 billion, while shareholders’ equity rose 11 per cent to Sh119 billion.
Borrowings declined 83 per cent to Sh442.86 million, mainly due to debt repayment.
KPC plans to increase annual revenue from the current Sh43 billion to Sh68 billion by 2030 through investments in storage, petroleum trading, re-exports, liquefied petroleum gas (LPG), liquefied natural gas (LNG), biofuels and power generation.
Chairperson Faith Bett-Boinett said the company was positioning itself to capture opportunities in the regional energy market through an integrated petroleum trading hub at the Kenya Petroleum Refineries Ltd facilities in Kipevu, Mombasa.
The proposed hub is expected to provide transhipment, bulk-breaking, bunkering and re-export services, potentially expanding KPC’s role beyond moving fuel into facilitating regional petroleum trade.
The strategy comes as East Africa seeks to strengthen energy supply infrastructure amid growing demand.
Developments such as the proposed Dangote refinery and petrochemicals complex in East Africa and Gulf Energy’s South Lokichar oil projects could create additional opportunities for storage, transportation and trading services.
KPC is also pursuing regional expansion, including plans to extend its pipeline from Eldoret to Kampala and eventually Kigali.
The launch of Uganda’s 320 million-litre Kampala Storage Terminal could support the company’s ambitions to deepen its presence in neighbouring markets.
Boinett said the company’s infrastructure and its wholly owned subsidiary, Kenya Petroleum Refineries Ltd, offered a platform for long-term growth and stronger regional influence.
Despite the diversification plans, KPC acknowledged that petroleum transportation and storage would remain its core business.
The dividend payment, with the share register closing on November 30, offers investors an immediate return.
