Dangote Group has been revealed as the private investor who acquired 25.76% stake in Kenya Pipeline Company Valued at Ksh 42.5 billion.
The move comes barely a month after the groundbreaking of a Ksh 2.2 trillion East African Petroleum Refinery which is being constructed by the Nigerian firm.
Dangote Group Chief Executive Officer Aliko Dangote revealed the transaction which involved acquisition of stakes held by Kenyan public entities to Bloomberg, in what is expected to support downstream distribution of petroleum products.
During Mashujaa Day Celebration in Eldoret City, President William Ruto backed the transaction saying its a vote of confidence investors have in Kenya.
“Just yesterday, in a demonstration of growing confidence in our capital markets, private investors acquired a 25% stake in Kenya Pipeline Company from public entities, marking another step towards mobilising private capital for strategic infrastructure. Together, these developments will strengthen our energy sector, attract investment, and create new opportunities for the Kenyan economy,” said Ruto.
Already, Kenya is targeting to begin commercial oil exports from Lake Turkana Basin by December this year after commitment by Gulf Energy which acquired the oil blocks from Tallow Oil.
KPC was listed on the Nairobi Securities Exchange in May this year after Initial Public Offering where the government raised Ksh 107 billion.
