The Kenya Pipeline Company (KPC) reported a pre-tax profit of KES 10bn ($77.13mn) for the 2023-24 financial year, a 32% year on year increase, The Star reported on March 13.

KPC, a state-owned corporation responsible for transporting, storing, and distributing petroleum products, plays a critical role in East Africa’s fuel supply chain with Kenya a transit hub for petroleum products destined for landlocked markets, including Uganda, Rwanda, and South Sudan.

Revenue climbed 15% to KES 35.4bn ($273.04mn), driven by higher petroleum throughput and favourable forex rates. Total throughput volumes rose 6% to 9.1mn cubic metres, with exports growing 12% to 4.7mn cubic metres.

KPC has finalised the acquisition of Kenya Petroleum Refineries Limited (KPRL), which it has operated under a lease agreement since 2017. The takeover is expected to enhance Kenya’s petroleum storage capacity and reinforce its role as a regional oil and gas hub, Swala Nyeti reported on March 13.

To boost efficiency, the company has invested in key projects, including leak detection systems, the Supervisory Control and Data Acquisition (SCADA) system, and the expansion of Line IV, linking Nairobi to Eldoret. Beyond its core petroleum business, KPC is diversifying revenue streams through fibre optic cable services, the Morendat Institute of Oil and Gas, and investments in liquefied petroleum gas (LPG).

As bne IntelliNews reported, Kenya is planning to list KPC on the Nairobi Securities Exchange (NSE) through an initial public offering, National Treasury Cabinet Secretary John Mbadi announced in early February. The move is part of the government’s broader strategy to privatise key state-owned enterprises (SOEs) and attract private investment rather than allocate more funding or seek loans.