Aliko Dangote acquires 24.7% stake in Kenya Pipeline Company

Nigerian billionaire Aliko Dangote has acquired a 24.7% stake in Kenya Pipeline Company (KPC) for KSh42.5 billion. The deal concluded at an effective price of Sh9.36 per share, following negotiations where state-backed pension schemes initially sought Sh9.50 per share. While the cash price was settled at Sh9.04 per share, the effective value includes dividend arrangements.

Following the transaction, Dangote becomes KPC’s second-largest shareholder. The Kenyan government retains a 35% stake, while Uganda holds 20.15% through UNOC. The sale reduced the combined ownership of Kenyan pension funds to under 15%. Dangote is expected to nominate a director to the KPC board, though the Kenyan and Ugandan governments maintain veto powers over key governance matters.

President William Ruto noted that KPC's share price rose by 10% within a week of the investment. Ruto expressed optimism that the reduced government stake could eventually match its previous total value due to increased market valuation. He also defended the sale, asserting that all investors have the right to purchase shares on the Nairobi Securities Exchange.