After Lamu Refinery, Dangote Acquires $327 Million Worth of Stake in Another Business in Kenya
- Aliko Dangote has acquired a 25% stake in a pipeline for approximately $327 million to expand his Nigerian energy business across Africa
- He is also building a $16 billion refinery in Kenya’s Lamu port, with a planned capacity of 700,000 barrels of crude oil per day
- The investments will strengthen Dangote’s presence in petroleum refining and distribution beyond Nigeria
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Aliko Dangote, president of Dangote Industries Limited (DIL), has acquired a 25% stake in Kenya Pipeline Company for approximately $327 million as the Nigerian billionaire expands his energy investments across Africa.
The acquisition strengthens Dangote’s presence in Kenya’s petroleum distribution sector and comes as he prepares to build a $16 billion refinery in the East African country.
Source: UGC
Dangote announced the deal on Wednesday, October 21, 2026, at the Financial Times Africa Summit in London, Reuters reported.
“We bought 25 per cent of their pipeline network for the distribution of petroleum products,” the industrialist said.
The investment adds to Dangote’s growing energy interests beyond Nigeria, where his 650,000-barrel-per-day refinery in Lagos has become a major player in the domestic petroleum market.
Dangote takes Nigeria’s refinery model to Kenya
The pipeline acquisition follows Dangote’s September 30 groundbreaking ceremony for a proposed 700,000-barrel-per-day refinery in Lamu, Kenya, which he launched alongside President William Ruto.
The $16 billion project is designed to replicate aspects of his Nigerian refinery business and expand petroleum refining capacity in East Africa.
Dangote said the Kenyan refinery would be commissioned within 40 months of the groundbreaking ceremony.
“We will come back here and commission this refinery in 40 months from today,” he said.
He added that the facility would process about 700,000 barrels of crude oil daily and generate 1,000 megawatts of electricity.
The refinery is also expected to produce one million tonnes of polypropylene and base oil, while supplying at least 20% of the jet fuel consumed in Europe and the United Kingdom, according to Dangote.
The projects reflect the billionaire’s ambition to extend his energy business beyond Nigeria and establish a stronger presence in regional and international petroleum markets.
Dangote deepens investment in African energy
Dangote’s latest acquisition comes as Kenya seeks private investment to strengthen its energy infrastructure and raise government revenue.
On Tuesday, President Ruto disclosed that private investors had acquired a 25% stake in the country’s pipeline network from public entities, although he did not name the buyers.
Earlier this year, Kenya sold a 65% stake in Kenya Pipeline Company through an initial public offering (IPO), its first major share sale in two decades.
The government pursued the sale to raise funds amid limited fiscal space.
For Dangote, the pipeline investment provides an additional foothold in the transportation and distribution of petroleum products, complementing his planned refinery in Lamu.
Source: Getty Images
The move also highlights the growing regional ambitions of Nigerian businesses, with Dangote seeking to expand beyond his home market into other African economies.
With investments in both refining and distribution, the billionaire is positioning his energy business to participate in multiple stages of the petroleum supply chain across the continent.
Dangote begins ₦1.83 trillion highway construction
Meanwhile, Legit.ng earlier reported that Dangote Group has begun a ₦1.83 trillion upgrade of Niger State’s 401-kilometre Lambata-Bida-Mokwa-Makera-Kontagora highway'
The company will recover eligible construction costs through tax credits under the federal government’s infrastructure investment scheme.
The concrete road is expected to improve safety, trade, and travel, with construction starting at four locations.
Source: Legit.ng
