Nigerian billionaire Aliko Dangote has acquired a stake of nearly 25% in Kenya Pipeline Company, joining Uganda as a major investor in the infrastructure that transports much of the region’s imported fuel.
Nigerian billionaire Aliko Dangote has acquired a 24.76% stake in Kenya Pipeline Company (KPC), joining Uganda among the major investors in the Kenyan firm whose infrastructure is central to the region’s petroleum supply chain.
Dangote confirmed the investment on Wednesday, October 21, 2026, while speaking at the Financial Times Africa Summit in London. The acquisition is valued at approximately $327 million, according to reports.
“We bought 25% of their pipeline network for the distribution of petroleum products,” Dangote said.
The deal expands Dangote’s presence in East Africa’s energy sector, giving him an interest in the infrastructure used to transport petroleum products within Kenya and to neighbouring markets, including Uganda.
For Uganda, which relies heavily on the Kenyan route for fuel imports, the change in KPC’s ownership is significant because the company’s pipeline network is central to the country’s fuel supply chain.
Earlier this year, Uganda acquired a 20.15% stake in KPC through the state-owned Uganda National Oil Company (UNOC), following Kenya’s decision to sell shares in the company through an initial public offering. Uganda’s investment was valued at $255.4 million.
The investment was intended to protect Uganda’s fuel supply chain and strengthen its position in the regional petroleum transport business.
Through its shareholding, Uganda also gains a financial interest in KPC’s performance and a voice in decisions affecting the infrastructure on which its fuel imports depend.
KPC reported improved financial performance in the year ended June 2026. Its net profit rose by 13% to approximately Shs370.56 billion, while revenue increased by 8.78% to about Shs1.376 trillion, driven by higher petroleum volumes transported in Kenya and the wider region.
The company’s reported dividend payout was approximately Shs188.8 billion.
Uganda’s shareholding gives the country an opportunity to benefit from the company’s earnings, alongside its strategic interest in the pipeline network.
Uganda is also represented on the KPC board by Finance Ministry Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi and Energy Ministry Permanent Secretary Irene Pauline Bateebe, who serve as non-executive directors.
Dangote’s investment comes as he expands his ambitions in East Africa’s petroleum industry. In September, he joined Kenyan President William Ruto at the groundbreaking of a planned $16 billion refinery in Mokowe, Lamu County.
The facility is designed to process up to 700,000 barrels of crude oil daily, with completion targeted around 2030.
The wider project is expected to include a power plant with a planned capacity of 1,000 megawatts, alongside chemical and fertiliser manufacturing facilities.
Its developers say the investment will support industrialisation, create jobs and strengthen the region’s energy infrastructure.
With interests spanning refining and fuel transportation, Dangote is expanding his presence across different stages of the petroleum supply chain.
His investment in KPC gives him a stake in a company that is strategically important to Uganda, which has also invested in the firm to protect its fuel supply interests.
For Uganda, the immediate implications will depend on KPC’s operational performance, investment decisions and ability to expand capacity in line with regional demand.
While the ownership changes give Uganda another major investor alongside it, they do not automatically guarantee lower fuel prices or eliminate supply risks.