Aliko Dangote has acquired a stake worth $327 million in Kenya Pipeline Company (KPC), adding a major petroleum transportation asset to his business interests as he pursues plans for a refinery in the East African country.
Business Day reported that the transaction involved 4.5 billion KPC shares valued at 42.5 billion Kenyan shillings, equivalent to approximately $327 million. The shares changed hands on the Nairobi Securities Exchange on October 19, representing about 24.76 per cent of the company’s issued shares.
Dangote announced the acquisition at an event in London on Wednesday, according to Bloomberg. He did not disclose which company within his business group completed the purchase.
The transaction has drawn reactions from Kenyan political leaders. President William Ruto welcomed the sale, describing it as a sign of confidence in the country’s capital market and an opportunity to raise funds for strategic infrastructure. Opposition politician Ndindi Nyoro, however, called for greater transparency surrounding the deal.
The Kenyan government retains a 35 per cent stake in KPC, while the National Social Security Fund holds approximately 22.2 per cent and Uganda National Oil Company owns 20.15 per cent.
Dangote’s investment comes as plans advance for a proposed refinery in Lamu, where groundbreaking took place on September 30. The facility is designed to process 700,000 barrels of crude oil daily, with Kenyan officials estimating its development cost at $17 billion. Dangote has put the projected cost at $20 billion.
The Dangote Group has offered East African governments a combined 30 per cent interest in the proposed refinery. Kenya’s proposed 10 per cent share has been valued at approximately $500 million.
Kenya is also discussing a proposed pipeline to transport crude oil from the Turkana fields in the country’s north-west to Lamu. If developed, the project would connect domestic crude production with the planned refinery and potentially facilitate exports.
KPC operates a pipeline network that transports petroleum products from the port of Mombasa to inland markets, serving as a key part of Kenya’s fuel distribution system. The acquisition gives Dangote a stake in existing petroleum infrastructure as negotiations over the refinery and additional pipeline projects continue.
