Billionaire Aliko Dangote acquires 24.76% of Kenya Pipeline Company — Nation Kenya
Nigerian billionaire Aliko Dangote has acquired a 24.76% stake in Kenya Pipeline Company (KPC) in Kenya. After state institutions and funds sold their holdings, he became the company’s second-largest shareholder.
Dangote announced the purchase at an event in London. According to Nation Kenya, Bloomberg News quoted the businessman as saying: “We bought 25% of their pipeline network for the distribution of petroleum products.” The publication notes that such a stake may give the investor representation on the board of directors and the ability to influence KPC’s strategic investments.
Sale of shares by state funds
At least eight state organizations sold shares less than eight months after investing billions of Kenyan shillings in KPC’s initial public offering. The sellers included Kenya’s National Social Security Fund, the Public Service Superannuation Scheme, the County Pension Fund and the Unclaimed Financial Assets Authority.
Pension funds for employees of Kenya Power, KPC and the Kenya Ports Authority also took part in the sale. State investors sold the shares at 9.02 Kenyan shillings apiece, nearly at the IPO price of 9 shillings. Trading in KPC shares on the Nairobi Securities Exchange began on March 9.
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During the IPO, around 13 state institutions collectively acquired 38.35% of KPC shares for 64.23 billion shillings. Nation Kenya estimates that the National Social Security Fund held 23.3% of the shares, the Public Service Superannuation Scheme held 7.94%, and the County Pension Fund held 2.2%.
Other projects in Kenya
The investment in KPC came several weeks after Dangote laid the foundation stone on September 30 for a $16 billion oil refinery in Lamu. The project is scheduled for completion in 2030 and is expected to supply products to the Kenyan market and other East African countries. Dangote offered the governments of countries in the region a combined 30% stake in the future refinery.
KPC reported a 13% increase in net profit to 11.58 billion shillings for the year ended June 2026. This enabled the company to pay 5.81 billion shillings in dividends.
