Kenya Pipeline Company Pre-Tax Profit Rises 8% to Sh17.5 Billion as Revenue Hits Sh43 Billion
Kenya Pipeline Company Plc (KPC) has reported an 8 per cent increase in profit before tax to Sh17.54 billion for the 2026 financial year, supported by higher petroleum transportation volumes and improved operational efficiency.
The listed petroleum products transportation and storage company announced the results on Wednesday, marking its first full-year financial performance since its privatisation earlier this year.
KPC’s group revenue increased by 9 per cent to Sh43 billion, up from Sh39.5 billion in the previous financial year, supported by a 7 per cent increase in local and transit volumes.
The company’s profit after tax grew by 13 per cent to Sh11.58 billion from Sh10.24 billion in the previous financial year.
Speaking during the release of the 2026 financial results, Acting Managing Director Pius Mwendwa attributed the growth to sustained revenue performance, 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.
KPC recorded a significant improvement in cash generation during the financial year, with cash from operating activities rising by 34 per cent to Sh17.39 billion.
Cash and cash equivalents at the end of the year increased by 84.4 per cent to Sh20.54 billion.
The company’s total assets grew by 6 per cent to Sh149 billion, while shareholders’ equity increased by 11 per cent to Sh119 billion.
Borrowings declined by 83 per cent to Sh442.86 million, mainly due to debt reduction during the financial year.
KPC operates an infrastructure network comprising approximately 1,342 kilometres of pipeline, alongside strategically located storage, pumping and loading facilities.
The company said it intends to build on its existing infrastructure and expand its revenue streams through diversification and regional growth.
KPC Chairperson Faith Bett-Boinett said the board supports the company’s growth and diversification strategy, including plans to establish an integrated petroleum trading hub at the Kenya Petroleum Refineries Ltd (KPRL) facilities in Kipevu, Mombasa.
KPRL, a wholly owned subsidiary of KPC, is expected to provide a platform for expanding the company’s energy and logistics operations.
Bett-Boinett said KPC was exploring opportunities beyond pipeline transportation, including petroleum storage, re-export, liquefied petroleum gas (LPG), liquefied natural gas (LNG), biofuels, power generation and support services for third-party petroleum trading operations.
“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 well positioned to strengthen national energy security, serve growing regional demand and generate additional revenue.
The proposed Kipevu trading hub is expected to offer transhipment, bulk-breaking, bunkering and re-export services to the regional market.
Bett-Boinett said emerging developments in the region, including the proposed Dangote East Africa Petroleum Refinery and Petrochemicals Special Economic Zone and the upstream Gulf Energy South Lokichar projects, presented opportunities for KPC’s expansion.
KPC is pursuing a growth strategy aimed at increasing and diversifying its revenue base from the current Sh43 billion to Sh68 billion by the 2030 financial year.
The company said it would continue relying on petroleum storage and transportation as its core business even as it expands into other energy and logistics activities.
The board has also committed to supporting strategic expansion programmes, including plans to extend the existing pipeline from Eldoret to Kampala and eventually to Kigali.
The launch of a 320-million-litre Kampala Storage Terminal by the Ugandan government is also expected to support KPC’s regional expansion plans.
The company said its infrastructure and regional presence would remain central to its role in supporting energy security and petroleum supply across Kenya and neighbouring markets.
Following the release of its full-year results, the KPC board approved a first and final dividend of Sh5.9 billion for the 2026 financial year.
The dividend amounts to Sh0.32 per ordinary share, with the share register scheduled to close on November 30.
