Kenya Pipeline Company Plc (KPC) reported a profit before tax of Sh17.54 billion for the year ended June 30, 2026, up 8% from Sh16.17 billion a year earlier, in its first full-year results since its privatisation and listing on the Nairobi Securities Exchange, acting Managing Director Pius Mwendwa announced on Wednesday, October 14, as stronger pipeline volumes and tighter cost control offset a volatile oil market.
Profit after tax rose 13% to Sh11.58 billion from Sh10.24 billion and earnings per share came in at Sh0.64. Group revenue grew 9% to Sh42.98 billion from Sh39.5 billion, supported by a 7% rise in local and transit volumes. Transport revenue, the core business, rose to Sh41.82 billion from Sh38.59 billion. Direct costs rose 8% to Sh9.16 billion because of higher maintenance and electricity costs, while earnings before interest, tax, depreciation and amortisation (EBITDA) climbed to Sh24.95 billion from Sh22.55 billion.
Financial performance highlights
Mwendwa attributed the performance to sustained revenue growth, improved operational efficiency, product availability and stronger cash generation, and said the company grew its top and bottom lines despite a difficult operating environment marked by volatile global petroleum prices and supply disruption caused by the Middle East crisis.
Cash generation was the standout. Cash from operating activities rose 34% to Sh17.39 billion on higher throughput, better collections and tighter working capital, and cash and equivalents at year-end almost doubled, rising 84% to Sh20.54 billion.
Balance sheet improvements
The balance sheet also strengthened. Total assets rose 6% to Sh149.27 billion and shareholders' equity grew 11% to Sh119.33 billion. Borrowings fell 83% to Sh442.9 million as the company paid down debt faster than planned, while other non-current liabilities rose 14% to Sh23.42 billion on higher asset retirement and lease provisions. Investing outflows rose to Sh4.48 billion from Sh2.52 billion as KPC spent on capacity expansion and asset replacement.
Challenges in comprehensive income
One figure runs the other way. Total comprehensive income fell to Sh7.59 billion from Sh28.42 billion because of a Sh3.99 billion loss in other comprehensive income, compared with an Sh18.18 billion gain a year earlier. The release does not explain the swing.
KPC runs about 1,342 kilometres of pipeline and has a combined capacity of about 14 billion litres a year, moving fuel from Mombasa to inland Kenya and the wider region. The results are the first test of the company under public ownership. The Treasury sold 65% of KPC in a Sh106 billion initial public offering and the shares began trading on March 9.
