The Kenya Pipeline Company (KPC) has moved swiftly to quell jittery market sentiments suggesting that Uganda’s burgeoning oil refinery ambitions could sound the death knell for Kenya’s petroleum transit dominance.

In a robust defence of regional integration, KPC Managing Director Joe Sang dismissed fears of an economic fallout, arguing that the extension of the pipeline to Kampala is a "strategic masterstroke" rather than a capitulation. The statement comes amidst reports that Uganda's push for energy independence could strip Kenya of millions of dollars in transit fees.

A Partnership, Not a Rivalry

Speaking from the KPC headquarters, Sang termed the skepticism as "short-sighted." He emphasised that the Eldoret-Malaba pipeline extension is designed to complement, not compete with, Uganda's refinery projects. "Uganda is our key trading partner," Sang declared. "An empowered neighbour creates a more robust regional economy. We are looking at a market of 300 million people in the East African Community, not just a binary contest between Nairobi and Kampala."

The MD noted that Kenya currently transports the bulk of Uganda's petroleum imports—estimated at over 90%—through the Mombasa port. The new infrastructure deals signed by President Ruto and President Museveni aim to secure this corridor against competition from the Central Corridor through Tanzania.

• The Numbers: Uganda imports approximately 2.5 billion litres of petroleum annually, a volume KPC cannot afford to lose.
• The Strategy: By extending the pipeline to the border, Kenya reduces the cost of fuel for Uganda by removing the expensive trucking leg, making the Northern Corridor more attractive.
• Future Proofing: The infrastructure is also being eyed to serve the Democratic Republic of Congo and South Sudan, expanding KPC's revenue base beyond Uganda.

The Geopolitical Chessboard

Energy experts, however, warn that Kenya must remain agile. With Tanzania aggressively courting landlocked nations for its Tanga port, KPC's efficiency is its only firewall. The "brotherly" rhetoric from the MD belies a fierce commercial war for the soul of East Africa's logistics.

"We are not asleep," Sang assured stakeholders. "We are re-engineering our operations to ensure we remain the transporter of choice." As the pipes are laid towards Malaba, the real test will be whether efficiency can trump the allure of sovereignty.