Kenya Pipeline to pay Sh5.9 billion dividend after recording Sh11.6 billion profit

Kenya Pipeline Company (KPC) has recommended a Sh5.9 billion dividend after recording a net profit of Sh11.6 billion for the financial year ended June 30, 2026, as revenue, cash reserves and total assets increased.

The company’s consolidated audited financial results for the 2025/26 financial year show that profit after tax rose by 13 per cent to Sh11.58 billion, up from Sh10.24 billion recorded in the previous financial year.

The board has recommended a first and final dividend of Sh5.9 billion, equivalent to Sh0.32 per share, subject to approval. If approved, the dividend will be paid to shareholders appearing on the company’s register at the close of business on November 30, 2026.

The results come as KPC enters its first full financial year as a listed public company, following its transition to a listed entity.

KPC’s total revenue increased by nine per cent to Sh42.98 billion in the year under review, compared with Sh39.50 billion in the 2024/25 financial year.

Transport revenue, the company’s main revenue line, grew to Sh41.82 billion from Sh38.59 billion.

The company attributed the growth in total revenue to an increase in local and transit volumes, which rose by seven per cent.

Direct costs increased by eight per cent to Sh9.16 billion from Sh8.44 billion, with the company citing higher maintenance and electricity costs.

Despite the increase in expenses, gross margin rose to Sh33.81 billion from Sh31.06 billion.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to Sh24.95 billion from Sh22.55 billion, while operating profit, measured as earnings before interest and tax, rose to Sh17.21 billion from Sh16.11 billion.

On the other hand, profit before tax climbed to Sh17.54 billion, compared with Sh16.17 billion in the previous year.

KPC’s total assets increased by six per cent to Sh149.27 billion as of June 30, 2026, from Sh140.63 billion a year earlier.

Property, plant and equipment accounted for Sh94.40 billion, up from Sh91.43 billion, while leasehold land was valued at Sh21.26 billion. Other non-current assets stood at Sh3.59 billion.

Current assets rose by 30 per cent to Sh30.03 billion from Sh22.89 billion.

The company attributed the increase mainly to higher cash balances arising from stronger collections, increased throughput and improved debt-recovery strategies.

Shareholders’ equity increased by 11 per cent to Sh119.33 billion from Sh107.92 billion.

Meanwhile, borrowings fell by 83 per cent to Sh442.86 million from Sh2.66 billion, which the company attributed primarily to accelerated debt repayment.

Other non-current liabilities increased by 14 per cent to Sh23.42 billion, reflecting higher provisions for asset retirement obligations and lease liabilities.

KPC reported a substantial improvement in its cash position, with cash and cash equivalents increasing by 84 per cent to Sh20.54 billion at the end of the financial year, up from Sh11.14 billion in June 2025.

Cash generated from operating activities increased to Sh17.39 billion from Sh12.94 billion, representing growth of about 34 per cent.

However, net cash flows from investing activities recorded an outflow of Sh4.48 billion, compared with Sh2.52 billion in the previous financial year. Financing activities recorded an outflow of Sh3.50 billion, down from Sh5.16 billion.

The company said investment spending reflected continued expenditure on infrastructure improvement, capacity expansion, asset replacement and other strategic projects.

KPC said its priorities following its transition to a listed public company include strengthening governance and investor relations, maintaining operational excellence and continuing investment in the safety, capacity and resilience of its regional pipeline and storage infrastructure.

The board expressed confidence that the changes undertaken during the year, including the shift to a listed market-disciplined governance model and a broader shareholder base, would support sustainable long-term performance.

The company also reaffirmed its intention to maintain the operational standards that have defined its role in the region’s petroleum supply chain.

The proposed Sh5.9 billion dividend remains subject to approval, with November 30, 2026, identified as the date for determining shareholders eligible for payment.