Dangote buys 25% of Kenya Pipeline for $327m, eyes pan-African fuel network

Aliko Dangote, a Nigerian business magnate, has bought a 25 percent ownership stake in Kenya's petroleum products pipeline network valued at approximately $327 million. At the Financial Times Africa Summit held in London, he disclosed this transaction, highlighting support from Kenya's president.

His latest significant foray into East African energy follows his plans to build a Lamu refinery capable of handling 700,000 barrels daily. This Kenya Pipeline stake forms just one component of a substantially broader investment programme.

Between 2026 and 2030, Dangote intends to deploy $50 billion across East, Central and Southern Africa. His strategy centres on developing a pan-African network for petroleum distribution, incorporating pipelines, storage terminals, and supply routes to facilitate refined fuel movement throughout the continent.

For those tracking Nigerian commerce, this initiative reflects how Dangote Industries, headquartered in Lagos, continues pushing into markets beyond Nigeria. His signature Lagos-based refinery produces 650,000 barrels each day and has fundamentally transformed Nigeria's petroleum landscape.

Through Kenya and other African nations, he seeks to replicate this achievement by securing control over both refining operations and distribution pathways. During his London appearance, Dangote advocated for protective policies that favour homegrown producers relative to competing imports.

He argued that permitting overseas merchandise to supplant local production essentially transfers jobs elsewhere on the continent while creating domestic unemployment. His substantial investment in the Kenya pipeline network exemplifies his strategy to build regional infrastructure that decreases Africa's dependence on foreign energy suppliers.