Dangote acquires 25% of Kenya Pipeline Company
By the AFREEQUE newsroom, based on Africanews
Aliko Dangote’s group has acquired 25% of Kenya Pipeline Company, the state-owned Kenyan company responsible for transporting petroleum products. The stake is part of the 25% of the company’s capital opened to private investors, while the group develops a 700,000-barrel-a-day refinery project in Lamu, Africanews reports.
The group of Nigerian businessman Aliko Dangote has acquired 25% of Kenya Pipeline Company (KPC), the Kenyan state-owned company that transports petroleum products. Dangote announced the deal at the Financial Times Africa Summit in London, according to Africanews.
The stake is part of the 25% of KPC’s capital sold to private investors. Kenyan President William Ruto had confirmed the sale without disclosing the buyers’ identities. The government had previously sold 65% of the company through a stock market listing, the first major sale of public assets in two decades, Africanews reports.
The acquisition comes weeks after work began on an oil refinery in Lamu, on Kenya’s coast. The project led by Dangote is planned to have a capacity of 700,000 barrels per day, comparable to that of the group’s refinery near Lagos, Nigeria.
The investment expands the group’s presence in the energy sector in East Africa, following its refining operations in Nigeria. Kenya is seeking to mobilise financial resources amid budgetary constraints.
The Lamu refinery project has already been subject to a Kenyan court order to maintain the status quo, issued on 29 September. On 30 September, Dangote announced a refinery in Kenya estimated to cost between $15 billion and $16 billion.
Summary produced with the help of artificial intelligence tools, under AFREEQUE’s editorial responsibility.
