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Africa’s richest man, Aliko Dangote, has announced that his company has acquired a 25 per cent stake in Kenya Pipeline Company in a transaction valued at approximately $327 million.
Dangote disclosed the acquisition on Wednesday at the Financial Times Africa Summit in London, saying the investment would strengthen the distribution of petroleum products and expand his company’s presence in East Africa’s energy sector.
According to Reuters, the president of Dangote Industries Limited said the acquisition was part of efforts to improve the transportation and distribution of petroleum products across the region.
“We bought 25 per cent of their pipeline network for the distribution of petroleum products,” Dangote said.
The investment comes as the Nigerian billionaire intensifies his expansion into Africa’s energy industry, with major projects planned to increase refining capacity and improve petroleum supply across the continent.
Investment strengthens Dangote’s presence in East Africa
The acquisition gives Dangote’s company a significant stake in Kenya’s petroleum transportation infrastructure, which plays a crucial role in the movement and distribution of fuel across the country and the wider East African region.
The deal follows Kenyan President William Ruto’s announcement on Tuesday that private investors had acquired a 25 per cent stake in the country’s pipeline network from public entities.
Ruto did not identify the investors at the time, but Dangote’s announcement subsequently disclosed his company’s involvement in the transaction.
The investment is expected to complement Dangote’s broader energy ambitions in Africa, particularly his plans to develop infrastructure supporting petroleum refining, transportation and distribution.
Kenya Pipeline Company operates infrastructure used to transport petroleum products from import terminals to storage facilities and distribution points, making it an important component of the country’s fuel supply chain.
Dangote plans $16bn refinery in Kenya
Beyond the pipeline investment, Dangote is pursuing plans to establish a major refinery in Kenya at an estimated cost of $16 billion.
The proposed refinery, located at Lamu Port, is designed to process approximately 700,000 barrels of crude oil per day, a capacity comparable to that of his refinery in Nigeria.
Dangote and President Ruto broke ground on the proposed project on September 30, marking a significant step in plans to expand refining capacity in East Africa.
Speaking about the project, Dangote said the refinery was expected to be commissioned within 40 months.
“We will come back here and commission this refinery in 40 months from today. The East African refinery is designed to process approximately 700,000 barrels of crude per day. It will also generate 1,000 megawatts, twice that of Lagos,” he said.
The billionaire added that the facility would produce one million tonnes of polypropylene and base oil, alongside other petroleum products.
He also said the refinery was expected to supply at least 20 per cent of the jet fuel consumed in Europe and the United Kingdom.
Kenya advances pipeline privatisation
The pipeline acquisition comes amid Kenya’s broader efforts to attract private investment into state-linked enterprises and raise government revenue.
Earlier this year, Kenya sold a 65 per cent stake in Kenya Pipeline Company through an initial public offering, marking a major privatisation initiative aimed at generating funds amid limited fiscal space.
The transaction was described as the country’s first major share sale in two decades.
The sale formed part of efforts to mobilise capital through the stock market while reducing the government’s direct ownership of selected commercial assets.
Dangote’s newly announced acquisition adds another dimension to the restructuring of the pipeline company, bringing one of Africa’s largest industrial investors into the ownership structure.
The investment also underscores the growing importance of private capital in developing energy infrastructure across Africa, as governments seek to improve fuel supply systems and attract financing for large-scale industrial projects.
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