Aliko Dangote acquires 25% stake in Kenya Pipeline Company

Nigerian billionaire Aliko Dangote has emerged as the second-largest shareholder of the Kenya Pipeline Company (KPC) after acquiring a 25% stake. The shares were reportedly sold by various state-backed pension funds and agencies, including the National Social Security Fund (NSSF) and the Public Servants Pension Scheme, whose combined holdings fell from 38.35% to below 15%.

President William Ruto has defended the transaction amid public and political criticism. Opposition leaders, including People’s Party of Kenya leader Ndindi Nyoro, have raised questions regarding the transparency of the sale and whether state-linked institutions secured adequate returns.

The deal is viewed as strategically significant due to the potential alignment between Dangote’s planned refinery in Lamu and KPC’s existing distribution infrastructure. While the government maintains that attracting private capital into strategic energy sectors is vital for economic development and job creation, critics continue to call for greater disclosure regarding the ownership structure and financing of the investment.