KPC shareholders set for Ksh 5.9B dividend pay as profit tops Ksh 11.6b

Kenya Pipeline Company (KPC) has announced a substantial Ksh 5.9 billion dividend for its shareholders, following a surge in full-year profits reaching Ksh 11.6 billion. Acting Managing Director Pius Mwendwa credited the financial growth to enhanced revenue performance, operational efficiency, and efficient cash generation from core business activities.

Despite challenges posed by global petroleum prices and supply volatility, KPC successfully increased its top line and bottom line while improving cost efficiencies. The company's IPO in April resulted in the sale of 65% stake to the government, raising Ksh 107 billion through the Initial Public Offering. KPC's total revenue rose by 9% to Ksh 39.5 billion in the year ending June 2026, driven by a 7% increase in local and transit volumes.

Cash from operating activities netted Ksh 17.4 billion, marking a 34% increase. The company is planning to establish an integrated petroleum trading hub at Kenya Petroleum Refineries Ltd (KPRL) facilities in Kipevu, Mombasa, and is exploring diversification into storage, re-export, LPG, LNG, biofuels, power generation, and supporting third-party petroleum market trading operations.

Following the IPO, KPC's total assets grew by 6% to Ksh 149 billion, while shareholders' equity increased by 11% to Ksh 119 billion. Share borrowings fell by 83% to Ksh 442.86 million due to reduced debt holdings. The Board approved the payment of a Ksh 0.32 dividend per share, totaling Ksh 5.9 billion.