Dangote Acquires Stake in Kenya Pipeline Company, Joining Uganda as Major Investor

Nigerian billionaire Aliko Dangote has acquired a 24.76% stake in the Kenya Pipeline Company (KPC), positioning himself alongside Uganda as a prominent investor in the infrastructure that drives East Africa’s petroleum sector. Dangote confirmed the estimated $327 million investment while speaking at the Financial Times Africa Summit in London.

The deal significantly expands Dangote’s footprint in the regional energy market, granting him influence over the pipeline network responsible for transporting petroleum products within Kenya and to landlocked neighbors like Uganda. This development follows Uganda’s earlier acquisition of a 20.15% stake in KPC through the Uganda National Oil Company (UNOC) for $255.4 million.

Uganda’s initial investment was designed to secure its vital fuel supply chain, gain a financial return, and secure a strategic voice in regional petroleum transport. Uganda currently maintains active oversight, with Finance Ministry Permanent Secretary Ramathan Ggoobi and Energy Ministry Permanent Secretary Irene Pauline Bateebe serving as non-executive directors on the KPC board.

Meanwhile, KPC has demonstrated strong financial health, reporting a 13% rise in net profit to approximately Shs370.56 billion and an 8.78% increase in revenue for the year ending June 2026. These gains were propelled by higher volumes of petroleum transported across the region, yielding a substantial dividend payout of roughly Shs188.8 billion.

Dangote’s entry into KPC coincides with his broader ambitions in East Africa’s oil and gas landscape. In September, the billionaire joined Kenyan President William Ruto to break ground on a massive $16 billion refinery project in Lamu County’s Mokowe area. Projected for completion around 2030, this future refinery is designed to process up to 700,000 barrels of crude oil daily.

While the shifting ownership structure brings deep-pocketed players into KPC, industry observers note that these corporate changes alone do not immediately guarantee lower pump prices or completely erase regional supply vulnerabilities for nations like Uganda. Read more details on the original report by visiting Nile Post.