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.

With the appointments of Uganda’s permanent secretary for finance, Dr. Ramathan Ggoobi, and permanent secretary for energy, Irene Bateebe, to the board effective July 28, landlocked Uganda is set to control the critical energy lifeline.

The boardroom restructuring follows Uganda’s acquisition of a 20.15% strategic stake in the company through the Uganda National Oil Company.

The purchase took place earlier this year during an initial public offering (IPO) in which Kenya floated 65% of the firm's shares on the Nairobi Securities Exchange.

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.

The pipeline serves as a vital economic artery for East Africa, carrying refined petroleum products from the coastal port of Mombasa to Kenya's interior and landlocked neighboring nations.

Uganda relies heavily on the network, importing roughly 90% of its daily fuel supply through Kenya.

Supporters view the move as a practical step to secure fuel access and lower transport costs across East Africa.

However, local analysts and political opponents argue that giving a foreign state direct influence over executive leadership and pricing decisions weakens Kenya's control over its own strategic assets.

The leadership changes come at a delicate moment for the energy firm, which has been seeking a permanent chief executive following recent executive turnover.

With Ggoobi and Bateebe officially seated, any candidate selected to head the pipeline network will now require explicit approval from Kampala.