Aliko Dangote acquires 25% stake in Kenya Pipeline Company

Nigerian billionaire Aliko Dangote has acquired a 24.76% stake in Kenya Pipeline Company (KPC), making him the second-largest shareholder. The acquisition, valued at approximately Sh42.5 billion ($327 million), was conducted via a block trade on the Nairobi Securities Exchange involving 4.5 billion shares.

The shares were purchased from several state-owned entities, including the National Social Security Fund (NSSF), the Kenya Ports Authority, and various public pension funds. The transaction follows KPC’s initial public offering in early 2026.

President William Ruto defended the sale, stating that the transfer of strategic assets to private investors demonstrates confidence in Kenya’s capital markets and helps mobilize capital for infrastructure. However, Kiharu Member of Parliament Ndindi Nyoro has raised allegations regarding the transaction, questioning whether the sale was structured to benefit private interests linked to the presidency.

This investment aligns with Dangote’s broader energy ambitions in East Africa, including his $16 billion oil refinery project in Lamu County. The KPC stake is expected to facilitate the distribution of petroleum products from his planned refinery to Kenyan and regional markets.