Kenya Pipeline to Cut Reliance on Oil, Expand into LPG and Fibre-Optic Networks

Kenya, January 20 , 2026 - The Kenya Pipeline Company (KPC) is taking strategic steps to reduce dependence on its core oil pipeline business by expanding into Liquefied Petroleum Gas (LPG) infrastructure and fibre- optic connectivity services, company officials and government sources say.

This shift comes as part of a broader plan to modernise operations, boost revenue diversity and enhance the firm’s resilience amid sector changes and its ongoing initial public offering (IPO). At the heart of the diversification strategy is the expansion of LPG storage, handling and distribution capabilities. KPC is poised to leverage recent state-level discussions around taking over the defunct Kenya Petroleum Refineries Limited (KPRL), a move that would bring significant new storage capacity and help accelerate the penetration of LPG across Kenya and the East African region.

Energy officials say repurposing the Changamwe facility will help ease supply chain bottlenecks and support national efforts to promote cleaner cooking fuels. In parallel, KPC has been developing its fibre-optic network, a telecommunications backbone running alongside its extensive pipeline infrastructure, to generate non-oil revenues. Licensed by the Communications Authority of Kenya, the company’s fibre business has already been deployed to support high-speed connectivity and hosted partnerships with major internet service providers, with longer-term plans to expand coverage to additional towns and serve broader regional demand.

The diversification push comes as KPC launches what is expected to be the largest initial public offering (IPO) on the Nairobi Securities Exchange (NSE) in years, offering a 65 % stake to the public. Part of the rationale for broadening KPC’s business lines is to make the company more attractive to investors by showing multiple future revenue streams beyond oil pipeline transport and storage.

Beyond LPG and fibre, KPC also operates complementary businesses such as the Morendat Institute of Oil and Gas (MIOG) and extensive laboratory services for quality assurance in the energy sector, all part of a long-term vision to transform the state entity into a multi-service regional energy and infrastructure firm.