Kenya Pipeline Company profit rises 13% to KSh 11.58 billion; KSh 0.32-a-share dividend proposed

Kenya Pipeline Company (KPC) Plc raised its profit after tax by 13% to KSh 11.58 billion in the year ended 30 June 2026 and proposed a first and final dividend of KSh 0.32 a share, according to results presented at the Nairobi Securities Exchange on 14 October 2026.

Profit after tax was KSh 10.24 billion a year earlier. Profit before tax was KSh 17.54 billion, the business news site Business.co.ke reported. Acting Managing Director Pius Mwendwa said the results reflected better operational efficiency, product availability and stronger cash generation from the pipeline network. He said KPC grew both its top and bottom lines despite volatile global petroleum prices and supplies linked to the Middle East crisis.

The dividend needs shareholders' approval. Those on the register at close of business on 30 November 2026 qualify. Business Daily reported on 14 October 2026 that the payment date is yet to be fixed. The technology news site TechTrends Kenya said the payout is close to half of profit after tax, in line with KPC's policy of distributing 50% of earnings.

At the results presentation an investor asked why the dividend per share was lower than the KSh 0.347 of the previous year. Business Daily quoted Mwendwa as saying the company is "reserving cash for some of the key critical infrastructure projects" it plans to undertake. These include expanded tank storage, estimated at KSh 5 billion, a pipeline extension to Kampala and later Kigali, and a KSh 600 million move into fixed internet services.

Cash from operating activities rose 34% to KSh 17.4 billion, and cash and cash equivalents rose 84.4% to KSh 20.5 billion. Borrowings fell 83% to KSh 442.86 million. Total assets rose 6% to KSh 149 billion and shareholders' equity rose 11% to KSh 119 billion.

Local and transit volumes grew 7%. The volume handled was about 10.6 billion litres across a 1,342 km pipeline network, with flows to Uganda, the Democratic Republic of Congo (DRC) and South Sudan. Capital expenditure rose to KSh 4.48 billion from KSh 2.52 billion.

KPC has set a target of establishing an integrated petroleum trading hub at the facilities of Kenya Petroleum Refineries Ltd at Kipevu in Mombasa. The hub, which could add bunkering, transshipment and storage-for-hire, is under consideration, and earnings and capital needs are still being evaluated.

KPC is also looking at possible storage, transport and pipeline roles linked to the Dangote refinery, which are prospective opportunities and not confirmed contracts. The company uses its pipeline right-of-way for fibre. A capital structure covering the period to 2030 is due to go to shareholders at the annual general meeting, and funding could include debt and project financing.

Chairperson Faith Bett-Boinett said KPC "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," the Kenya Broadcasting Corporation (KBC) reported.

At the Central Bank of Kenya's rate of KSh 129.94 to the US dollar on 8 October 2026, the profit is about US$89 million, or about 600 million yuan at the central parity rate of 6.7330 yuan to the US dollar published by the China Foreign Exchange Trade System on 9 October 2026.