Nigerian billionaire Aliko Dangote has bought a 24.76 per cent stake in Kenya Pipeline Company (KPC) for about Sh42.5 billion ($327 million), becoming one of the biggest shareholders in the state-backed fuel transporter barely a month after breaking ground on his Sh2.2 trillion oil refinery in Lamu.
The Dangote Group chief executive disclosed the deal at an event in London on Wednesday, October 21, 2026, according to Bloomberg. “We bought 25 per cent of their pipeline network for the distribution of petroleum products,” he said. The deal covers about 4.5 billion KPC shares.
The shares were sold by public institutions that acquired stakes in KPC during its initial public offering (IPO) earlier this year. Business Daily reports that at least eight parastatals sold their holdings, among them the National Social Security Fund (NSSF) and the Unclaimed Financial Assets Authority (UFAA).
The sale comes less than eight months after the institutions acquired the shares. The total price works out to about Sh9.44 per share, above the IPO price of Sh9.
President William Ruto welcomed the transaction during the Mashujaa Day celebrations in Eldoret on Tuesday, describing it as a vote of confidence in Kenya’s capital markets.
“Just yesterday, in a demonstration of growing confidence in our capital markets, private investors acquired a 25% stake in Kenya Pipeline Company from public entities, marking another step towards mobilising private capital for strategic infrastructure,” the President said.
“Together, these developments will strengthen our energy sector, attract investment, and create new opportunities for the Kenyan economy.”
The investment gives Dangote a major foothold in the infrastructure that moves fuel across Kenya and into neighbouring countries. KPC runs a 1,342-kilometre pipeline network and storage depots serving Kenya and transit markets, including Uganda.
The deal comes as Dangote builds the Dangote East Africa Refinery in Lamu County. The refinery is designed to process 700,000 barrels of crude oil a day and is due to be completed within 40 months of the groundbreaking ceremony led by Dangote and President Ruto on September 30, 2026. The refinery is expected to supply Kenya, Uganda and Tanzania.
The stake purchase follows strong results from KPC, which reported a 13 per cent rise in net profit to Sh11.58 billion in the year to June 2026 and proposed a dividend of Sh5.9 billion.
The Government raised Sh107 billion by selling 65 per cent of its shareholding in the company through the IPO, at the end of which KPC was listed on the Nairobi Securities Exchange.
