Nigerian billionaire Aliko Dangote has confirmed acquiring a 24.76 percent stake in Kenya Pipeline Company (KPC) for approximately Ksh42.5 billion, purchasing shares previously held by government institutions.
According to Bloomberg, Dangote announced the investment at the 13th annual Financial Times Africa Summit in London on October 21 but did not disclose which company in his business group acquired the stake.
“We bought 25% of their pipeline network for the distribution of petroleum products,” Dangote said.
The latest investment adds to Dangote’s growing business interests in Kenya, including the proposed Dangote East African Refinery in Lamu County.
The refinery, backed by Dangote and President William Ruto, broke ground in Lamu County on September 30, 2026, and is expected to begin full operations by 2030, with a planned processing capacity of 700,000 barrels of oil per day.
Dangote Buys Ksh42.5 Billion Kenya Pipeline Stake Held by State Agencies
Bloomberg noted that the transaction involves approximately 4.5 billion KPC shares held by state institutions, including the National Social Security Fund (NSSF) and the Unclaimed Financial Assets Authority (UFAA).
The acquisition follows KPC’s initial public offering earlier this year, during which the government bought shares after private investor demand fell short of expectations.
Earlier, Kiharu MP Ndindi Nyoro called for greater transparency over the sale of 4.5 billion Kenya Pipeline Company (KPC) shares, questioning the identities of the private investors who acquired the 24.76 percent stake from public institutions.
Nyoro questioned whether the transaction, valued at approximately Ksh42.5 billion, had delivered fair value to the selling institutions, noting that the shares were sold at prices ranging from Ksh9.02 to Ksh9.36 each, with brokerage fees further reducing the proceeds.
President William Ruto, however, defended the transaction, describing the block trade as a sign of investor confidence in Kenya’s capital markets and a way to attract private capital into strategic infrastructure.
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How Shares Are Distributed
The Kenya Pipeline Company (KPC) launched its initial public offering on Monday, January 19, 2026, marking the country’s first major electronic IPO (E-IPO).
During the IPO, Stanbic Bank, KCB, and Co-operative Bank were the official receiving banks.
Faida Investment Bank served as the lead transaction advisor during the Kenya Pipeline Company (KPC) IPO, while Dyer & Blair Investment Bank acted as the lead sponsoring broker and Francis Drummond & Co. Ltd. as the co-sponsoring broker.
Also Read: CMA Names Firms Helping Kenyans Invest In Dangote Refinery IPO
TripleOKLaw Advocates and G&A Advocates LLP served as joint legal advisors, with PwC acting as the reporting accountant and Image Registrars as the registrar.
Belva Digital handled advertising and Apex Porter Novelli managed public relations during the IPO.
Before Dangote’s acquisition, the government, through the National Treasury and Ministry of Energy, held about 35 percent of KPC, while the National Social Security Fund (NSSF) owned about 22.2 percent after investing about Ksh38.2 billion in the IPO.
Uganda National Oil Company (UNOC) held a 20.15 percent stake, with other shareholders including the Public Service Superannuation Scheme, the County Workers Pension Fund and the Unclaimed Financial Assets Authority (UFAA), alongside other institutional and state-linked entities.
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