Africa’s richest man, Aliko Dangote, has acquired a 25 per cent stake in Kenya Pipeline Company (KPC) for approximately $327.4 million as he expands his energy investments across the continent.
According to reports by Reuters, Bloomberg Markets and Business Daily Africa on Wednesday, October 21, 2026, Dangote disclosed the investment at the Financial Times Africa Summit in London, confirming his entry into the Kenyan petroleum distribution sector.
“We bought 25% of their pipeline network for the distribution of petroleum products,” he said.
The transaction is valued at approximately 42.5 billion Kenyan shillings, equivalent to about $327.4 million. According to Business Daily Africa, Dangote acquired 4.5 billion shares previously held by public institutions, including the National Social Security Fund (NSSF) and the Unclaimed Financial Assets Authority (UFAA).
The acquisition makes Dangote the second-largest shareholder in KPC, which was listed on the Nairobi Securities Exchange on March 9, 2026.
Earlier this year, the Kenyan government sold a 65 per cent stake in the company through an initial public offering (IPO) as part of efforts to raise revenue. The transaction marked the country’s first major share sale in two decades.
Dangote’s latest investment comes amid an expansion of his business interests in Kenya. On September 30, Kenyan President William Ruto and the billionaire businessman laid the foundation for a proposed oil refinery at the port of Lamu, with a planned processing capacity of 700,000 barrels of crude oil per day.
The refinery is estimated to cost between $16 billion and $20 billion, with construction expected to take 40 months and completion targeted for 2030.
The proposed facility is expected to supply refined petroleum products to Kenya and other regional markets, including Uganda, Tanzania, Rwanda, Ethiopia and South Sudan. Dangote Group has offered East African governments a combined 30 per cent stake in the project, with Kenya offered a 10 per cent interest valued at approximately $500 million.
Speaking at the groundbreaking ceremony, Dangote said the project would help achieve energy self-sufficiency across a region stretching from Ethiopia to Mozambique by reducing dependence on imported refined petroleum products.
“We are breaking ground for a new chapter in Africa’s industrial journey to a brighter future,” he said.
His acquisition of a stake in KPC is also strategically significant because the company’s pipeline network transports petroleum products inland from the coastal city of Mombasa. The infrastructure could provide an important distribution channel for fuel produced at the planned Lamu refinery.
Kenya currently relies entirely on imports for its refined petroleum products, making the pipeline network a crucial part of the country’s fuel distribution system.
The transaction attracted attention after an unexplained block trade appeared on the Nairobi Securities Exchange. On Tuesday, President Ruto disclosed that private investors had acquired a 25 per cent stake in the pipeline company from public entities but did not identify the buyers. Dangote’s announcement subsequently revealed the identity of the investor.
Beyond his Kenyan investments, Dangote operates a refinery near Lagos, Nigeria, with a capacity of 650,000 barrels per day. His business interests also span fertiliser, cement, sugar and other industries.
According to Bloomberg, his net worth exceeds $28 billion, making him Africa’s richest individual.
Analysts say the investment could strengthen Dangote’s position in East Africa’s energy market, where other major projects are also being developed. These include the Tanzania-Uganda energy hub in Tanga, backed by Vitol.
The acquisition of the KPC stake, alongside the proposed Lamu refinery, represents a significant expansion of Dangote’s energy infrastructure investments and could strengthen his access to petroleum distribution networks across East Africa.
SOURCE: Updatenews
