Dangote Acquires Stake in Kenya Pipeline Company for US$327 Million

en.Wedoany.com Reported - On October 21, Aliko Dangote, founder of Nigeria's Dangote Group, announced at the Financial Times Africa Summit in London that his company had acquired approximately 25% of the shares in Kenya Pipeline Company, entering the country's refined petroleum products pipeline transportation and storage infrastructure sector. Local Kenyan transaction records show that the deal involved approximately 4.5 billion shares, representing 24.76% of the company's total share capital, with a transaction value of approximately KES 42.5 billion, equivalent to about US$327 million.

The shares in this transaction came from several Kenyan public institutions. On October 20, local Kenyan media reported that at least eight public institutions had sold their shares in Kenya Pipeline Company. Dangote subsequently confirmed the identity of the acquirer. Following the completion of this transaction, Dangote became the second-largest shareholder of Kenya Pipeline Company.

Kenya Pipeline Company listed on the Nairobi Securities Exchange on March 9, 2026. Previously, the Kenyan government sold 65% of the company's shares through an initial public offering. This was the Kenyan government's first large-scale public offering of state-owned enterprise shares in nearly 20 years. The shares acquired by Dangote in this transaction mainly came from public institutions that participated in the initial public offering earlier this year, constituting a post-listing share transfer.

Kenya Pipeline Company operates a refined petroleum products transmission network with a total length of approximately 1,342 kilometers, connecting major cities including the Port of Mombasa, Nairobi, Nakuru, Eldoret, and Kisumu, along with supporting oil storage, pumping, and loading facilities. The company's pipeline network has an annual refined petroleum products transmission capacity of approximately 14 billion liters, of which the Mombasa–Nairobi pipeline is 450 kilometers long with a diameter of 20 inches and an installed transmission capacity of 1,000 cubic meters per hour.

This acquisition took place while Dangote is advancing the Lamu refinery project in Kenya. In September 2026, Dangote commenced construction of a refinery project at the Port of Lamu in Kenya with a designed daily processing capacity of 700,000 barrels of crude oil. This project and the pipeline company acquired in this transaction involve petroleum processing and refined petroleum products transportation respectively. Dangote currently also operates a refinery of similar scale near Lagos, Nigeria.