Aliko Dangote has acquired a 24.76% stake in Kenya Pipeline Company (KPC) in a deal valued at about $327 million on the Nairobi Securities Exchange.
The Financial Times reported that Dangote set the price at $335 million and said he plans to invest an additional $1.5 billion to expand the pipeline networStatetate institutions, including the National Social Security Fund and the Unclaimed Financial Assets Autho, previously held the roughly 4.5 billion sharesrity.
The sale follows KPC’s IPO earlier this year, when the government stepped in to buy shares amid low uptake from private investors.
Dangote disclosed the deal at an event in London, telling Bloomberg: “We bought 25% of their pipeline network for the distribution of petroleum products.” He did not say which of his companies made the purchase.
The sale has drawn scrutiny. Kiharu MP Ndindi Nyoro alleged that public pension funds were directed to buy KPC shares before some were sold to a private investor.
The purchase comes weeks after Dangote broke ground on a Lamu oil refinery.
The project is valued at $16 billion and is scheduled for completion in 2030. Dangote has offered East African countries a combined 30% stake in the refinery, opening it to about $1.5 billion in regional investment.
Kenya has been offered a 10% stake worth about $500 million.
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