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Dangote buys quarter stake in Kenya oil pipeline

The Nigerian industrialist is expanding petroleum distribution across Africa, with projects planned in five countries and a new refinery in Kenya.

Dangote Industries has acquired a 25 per cent stake in Kenya's petroleum products pipeline network, the group's president Aliko Dangote said at the Financial Times Africa Summit 2026 in London. The purchase came with support from Kenya's president and forms part of a broader strategy to strengthen fuel distribution infrastructure across the continent, Dangote explained during a conversation with the Financial Times Africa Editor.

Beyond Kenya, Dangote is pursuing petroleum distribution projects in Djibouti, Ethiopia, Cameroon and Namibia. The group is developing a distribution corridor linking Djibouti with Addis Ababa, Ethiopia's capital, complete with tank farms for storing and moving refined petroleum products. A Cameroon project is nearing completion, while Namibia has been identified as a strategic entry point into Southern Africa. The industrialist noted that the distance from the Dangote Petroleum Refinery in Lagos to Namibia by sea is approximately four days, enabling efficient supply to markets including Botswana and South Africa. Dangote also outlined plans for a distribution corridor spanning Zimbabwe and Zambia.

The expansion includes plans for a second refinery in Lamu, Kenya, with a proposed capacity of roughly 700,000 barrels per day. Dangote said the decision to invest in East Africa reflected the region's substantial industrial and mining activities, rising energy needs and persistent difficulties obtaining diesel and other petroleum products. The Kenyan refinery would source crude oil from multiple markets rather than relying solely on production from Uganda or Kenya. Lamu was selected following technical assessments that identified access to deep water, marine facilities and adequate water resources as critical factors. Dangote alleged that vested commercial interests attempted to halt the project through legal action before its announcement, though he said the investment decision was reached within four months.

Dangote also called on African governments to shield domestic industries from unfair foreign competition, arguing that reliance on imported goods was damaging local manufacturing and employment. He questioned why African nations should expose emerging industries to unrestricted competition when developed economies were increasingly protecting their own manufacturing sectors. The group has budgeted approximately $50bn for investments between 2026 and 2030 to expand operations and encourage other African entrepreneurs to participate in industrial development. Dangote identified inadequate electricity supply as a major obstacle to industrialisation, particularly in mining and mineral processing. He stated that approximately 650 million Africans lacked access to electricity and that addressing this challenge would unlock opportunities for manufacturing and economic diversification.

For businesses seeking to invest in African energy and distribution infrastructure, Dangote's expansion demonstrates confidence in cross-border petroleum supply networks as a growth opportunity, though success depends on reliable electricity and political support.