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Uganda Secures Veto Power and Board Seats in Kenya Pipeline Deal
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Pipeline Technology Journal - Latest Developments and Technical Excellence for the International Pipeline Community
Flags of Uganda and Kenya infront of a blurred background (© Shutterstock/Aritra Deb)Uganda has secured veto power over the hiring and firing of the chief executive officer of the Kenya Pipeline Company, alongside gaining two seats on the state-owned firm’s board.
The arrangement gives President Yoweri Museveni’s government effective leverage over Kenya’s critical fuel transport infrastructure, though critics warn the deal compromises Kenya’s energy sovereignty.
Under the revised governing terms, Uganda holds veto authority over key corporate decisions.
In addition to having a say on executive leadership, Kampala gained veto rights over pipeline tariff adjustments, dividend policy changes, corporate restructurings, and any modifications to share capital.
Uganda relies heavily on the network, importing roughly 90% of its daily fuel supply through Kenya.