Kenya Pipeline Lifts Profit 13% to KSh 11.6B as Cash Balance Jumps 84%Kenya Pipeline Lifts Profit 13% to KSh 11.6B as Cash Balance Jumps 84%

The results cover the financial year 2025/26 and matter because the company moves most of the petrol, diesel and jet fuel used in Kenya and several neighbouring countries. Its health affects the Government, which owns it, and the investors who bought shares when it joined the Nairobi Securities Exchange (NSE) in March 2026.

Acting Chief Executive Pius Mwendwa presented the figures at the NSE on 14 October, as reported by TechTrends Kenya. Kenya Pipeline Company said revenue rose 9% to KSh 42.98B ($330.77M) from KSh 39.50B ($304.0M) a year earlier. Transport revenue, the money earned for moving fuel through the pipeline, rose 8% to KSh 41.82B ($321.8M).

Profit grows faster than revenue

Profit before tax rose 8% to KSh 17.5B ($134.67M). Profit after tax rose faster, at 13%, to KSh 11.6B ($89.27M). EBITDA, a measure of earnings before interest, tax, depreciation and amortisation, rose 11% to KSh 25B ($192.4M).

Costs grew more slowly than income. Direct expenses rose 8% to KSh 9.1B ($70.0M), driven by electricity and maintenance. Operating costs rose 4% to KSh 8.8B ($67.7M).

The company handled about 10.6 billion litres of petroleum products over a network of 1,342 kilometres. Its active storage capacity is about 1.14 billion litres. The volumes include fuel moving to Uganda, the Democratic Republic of Congo and South Sudan.

Cash balance climbs 84%

Operating cash flow rose 34.3% to KSh 17.39B ($133.83M) from KSh 12.94B ($99.58M). Closing cash and cash equivalents rose 84.4% to KSh 20.54B ($158.08M) from KSh 11.14B ($85.73M).

Borrowings fell 83.4% to KSh 400M ($3.08M), and current liabilities, the bills due within a year, fell 47% to KSh 6.5B ($50.02M). Shareholders' equity rose 10.6% to KSh 119.3B ($918.12M), and total assets rose 5.9% to KSh 149.3B ($1.15B).

Capital spending nearly doubled to KSh 4.48B ($34.48M) from KSh 2.52B ($19.39M), according to the results as reported. For a reader who owns shares, the low debt and large cash balance mean the company is not leaning on lenders to fund its growth.

Dividend per share dips

Kenya Pipeline proposed a dividend of KSh 5.9B ($45.4M), or KSh 0.32 a share. That is lower than the KSh 0.347 a share paid before, even though the total payout stays close to KSh 5.9B.

An investor raised the gap at the presentation. Management pointed to a policy of paying out 50% of earnings, TechTrends Kenya reported. The payout still needs shareholder approval. Over the past five years the company has paid about KSh 24B ($184.7M) in dividends to the Government.

The state's cut matters at a time when Treasury is weighing its own funding options. Mwenendo earlier reported on Kenya's debt swap plans as financing costs rose.

Trading hub and Dangote ideas

Management said it is considering a petroleum trading hub covering bunkering, transshipment and storage for hire. Earnings potential and capital needs are still being assessed. It is also exploring possible roles tied to the Dangote refinery in Nigeria, such as storage, transport and pipeline services. None of these are confirmed contracts.

The company also earns from fibre-optic cable laid along its pipeline route. A five-year plan runs from 2025/26 to 2029/30, and a capital structure to 2030 will go to the annual general meeting for approval. Funding could include debt and project finance.

Fuel moved by the pipeline feeds into the pump prices drivers pay. As Mwenendo earlier reported, pump prices held steady in the latest review period, and pipeline costs are one input among several.

Investors have also been active in the market this month. In an earlier report by Mwenendo, foreign investors sold shares worth a net KSh 737M ($5.67M) in one week, so a steady dividend payer stands out.