Nigeria’s Dangote Group has acquired a 25 per cent stake in Kenya Pipeline Company (KPC), extending its investment in East Africa’s petroleum sector from refining into distribution infrastructure.
The transaction follows Kenya’s earlier sale of a 65 per cent interest in the pipeline operator through an initial public offering (IPO). President William Ruto had previously disclosed that private investors acquired a quarter of the network from public entities, without identifying the buyers.
The acquisition coincides with Dangote’s planned $16 billion refinery and petrochemical complex in Lamu, Kenya. Construction officially commenced with a groundbreaking ceremony on September 30, 2026. The facility is designed to process 700,000 barrels of crude oil per day, with completion expected in 2029.
In September, Engineers India secured a contract worth more than $450 million to manage the development of the proposed facility.
The two investments point to a strategy to establish a presence across key stages of the petroleum value chain. While the proposed refinery would provide large-scale processing capacity, the pipeline stake gives Dangote an interest in infrastructure used to transport petroleum products.
However, the strategic significance will depend on the execution of the refinery project and the commercial benefits of combining an interest in distribution infrastructure with expanded refining capacity. If delivered as planned, the investments could strengthen Dangote’s position in Kenya’s petroleum market and broaden its reach across the regional energy supply chain.