Aliko Dangote Acquires 25% Stake in Kenya Pipeline Company

Aliko Dangote, founder and chief executive of Dangote Industries Limited, has acquired a 25% stake in Kenya Pipeline Company (KPC) for about $327 million. This acquisition extends Dangote's influence in East Africa's fuel distribution network.

The announcement was made at an event in London, although Dangote did not specify which of his companies facilitated the purchase. A report from the Nairobi Securities Exchange indicated a block transaction involving approximately 4.5 billion shares of KPC, valued at KSh42.5 billion ($327.4 million).

KPC, which has a market valuation of about KSh163.9 billion, operates a pipeline network of 1,342 kilometers, moving petroleum products from Mombasa to inland markets and supplying other East African countries. The company was established in 1973 and began operations in February 1978.

This purchase follows Dangote's $16 billion refinery project in Kenya's Lamu archipelago, with construction starting on September 30 and completion expected around 2030.