Nigerian billionaire Aliko Dangote buys 24.76 per cent stake in Kenya Pipeline for Sh42.5 billion

Nigerian billionaire Aliko Dangote buys 24.76 per cent stake in Kenya Pipeline for Sh42.5 billion

His announcement came a day after President William Ruto revealed that private investors had bought about a quarter of KPC from public institutions. Ruto did not identify the investors.

Nigerian billionaire Aliko Dangote has bought a 24.76 per cent stake in Kenya Pipeline Company (KPC) for about Sh42.5 billion ($327 million), securing an interest in the infrastructure used to transport fuel across Kenya and into neighbouring countries.

Dangote disclosed the purchase at an event in London on Wednesday but did not identify which company in his business group acquired the shares. The purchase involves about 4.5 billion shares.

“We bought 25 per cent of their pipeline network for the distribution of petroleum products,” Dangote said, according to Bloomberg.

His announcement came a day after President William Ruto revealed that private investors had bought about a quarter of KPC from public institutions. Ruto did not identify the investors.

In March, the government sold a 65 per cent stake in KPC through an initial public offering on the Nairobi Securities Exchange (NSE) to raise funds. The latest transaction involves public institutions selling their shares to private investors.

Dangote's investment in the pipeline company comes as he prepares to establish a major refining operation in Kenya. On September 30, he joined Ruto at the groundbreaking ceremony for the planned $16 billion (Sh2.2 trillion) Dangote East Africa Refinery in Mokowe, Lamu County.

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Designed to process up to 700,000 barrels of crude oil per day, the facility is expected to produce petrol, diesel and aviation fuel for Kenya and regional markets. Its planned capacity would make it one of Africa's largest refining complexes. The project is also expected to include petrochemical and fertiliser manufacturing facilities, alongside a power plant with a proposed capacity of 1,000 megawatts.

Its development is part of broader plans to establish Lamu as an industrial and logistics hub linked to the LAPSSET corridor, which is intended to connect Kenya with neighbouring countries, including Ethiopia and South Sudan.

The Port of Lamu has since received a second shipment of heavy machinery for the project, marking another step in preparations for the construction of the petroleum processing complex.

The vessel MV Great Glory arrived at the Port on Tuesday carrying 154 assorted pieces of heavy machinery destined for the project, following an earlier delivery of nearly 3,000 metric tonnes of construction equipment in late September.