By SIMEON OGOEGBULEM
The President of Dangote Industries Limited, Aliko Dangote, has acquired a 25 per cent stake in Kenya Pipeline Company (KPC) in a deal valued at approximately $327 million, expanding his investments in East Africa’s petroleum distribution infrastructure.
Dangote disclosed the acquisition during an event in London on Wednesday, October 21, 2026, according to Bloomberg. However, Dangote did not disclose which of his companies acquired the stake.
The acquisition comes as the Nigerian industrialist develops a $16 billion oil refinery in Kenya’s Lamu archipelago, modelled after his 700,000-barrel-per-day refinery in Lagos.
Kenya Pipeline Company operates the country’s petroleum transportation and distribution network, serving as a major link between the coastal port of Mombasa and inland fuel markets.
The company was previously wholly owned by the Kenyan government until it sold 65 per cent of its shares through an initial public offering (IPO) earlier in 2026, opening the business to private investors.
According to a report released by the Nairobi Securities Exchange (NSE) on Monday, Kenya Pipeline recorded a block transaction involving approximately 4.5 billion shares valued at KS42.5 billion (about $327.4 million). The company currently has a market valuation of approximately 163.9 billion shillings.
Kenya Pipeline Company was established in 1973 and commenced commercial operations in February 1978, growing into one of the country’s most important energy infrastructure operators.
According to information published on its official website, the company manages an extensive petroleum transportation system connecting Kenya’s coastal import facilities with major consumption centres across the country and neighbouring East African markets.
Its pipeline network spans approximately 1,342 kilometres, supported by petroleum storage depots, pumping stations and loading facilities. The infrastructure has an estimated annual handling capacity of 14 billion litres of petroleum products.
Beyond serving Kenya’s domestic market, the network facilitates petroleum supplies to other East African countries, strengthening regional energy trade and distribution.
Following its listing on the Nairobi Securities Exchange, the company now operates as a publicly traded entity, combining commercial investment objectives with its responsibility for supporting Kenya’s energy security.
Dangote’s acquisition gives his business interests a significant stake in the infrastructure supporting Kenya’s petroleum supply chain, alongside his proposed investment in the country’s refining sector.
Dangote’s acquisition of a stake in KPC comes as the Kenyan government is also planning to acquire an equity interest in his proposed Lamu oil refinery.
In September 2026, the Kenyan government had announced plans to invest in the KSh2.2 trillion ($16 billion) refinery project through its National Infrastructure Fund.
President William Ruto disclosed the plan during the refinery’s groundbreaking ceremony on September 30, describing the investment as part of efforts to strengthen Kenya’s participation in major infrastructure and industrial projects.
The development also comes amid Dangote’s efforts to attract East African investors into his existing Nigerian refinery business.
Dangote Petroleum Refinery & Petrochemicals FZE has offered East African investors access to nearly 20 per cent of its $1.6 billion initial public offering, with the regional allocation expected to raise up to $300.4 million.
The offer involves approximately 729 million Global Depositary Receipts priced at KS53.50 each, following regulatory approvals in Kenya and Uganda.
Meanwhile, the Lamu refinery, which formally broke ground on September 30, 2026, is expected to cost between $16 billion and $17 billion, with completion targeted around 2030.
