Nigerian billionaire Aliko Dangote has acquired a 24.76% stake in Kenya Pipeline Company (KPC) for approximately $327 million, Dangote confirmed on Wednesday, October 21, 2026, while speaking at the Financial Times Africa Summit in London. The deal expands Dangote's presence in East Africa's energy sector and gives him an interest in the infrastructure used to transport petroleum products within Kenya and to neighbouring markets, including Uganda.
Uganda is now among the major investors in KPC after acquiring a 20.15% stake earlier this year through the state-owned Uganda National Oil Company (UNOC) for $255.4 million, following Kenya's decision to sell shares through an initial public offering. Uganda's investment was intended to protect its fuel supply chain and strengthen its position in the regional petroleum transport business. Uganda is represented on the KPC board by Finance Ministry Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi and Energy Ministry Permanent Secretary Irene Pauline Bateebe, who serve as non-executive directors.
KPC reported improved financial performance in the year ended June 2026, with net profit rising by 13% to approximately Shs370.56 billion, while revenue increased by 8.78% to about Shs1.376 trillion, driven by higher petroleum volumes transported in Kenya and the wider region. The company's reported dividend payout was approximately Shs188.8 billion. Through its shareholding, Uganda gains a financial interest in KPC's performance and a voice in decisions affecting the infrastructure on which its fuel imports depend.
Dangote's investment comes as he expands his ambitions across different stages of the petroleum supply chain in East Africa. In September, he joined Kenyan President William Ruto at the groundbreaking of a planned $16 billion refinery in Mokowe, Lamu County, designed to process up to 700,000 barrels of crude oil daily, with completion targeted around 2030. The wider project is expected to include a power plant with a planned capacity of 1,000 megawatts, alongside chemical and fertiliser manufacturing facilities. With interests spanning refining and fuel transportation, Dangote is expanding his presence across the region's petroleum supply chain.
For Uganda, which relies heavily on the Kenyan route for fuel imports, the change in KPC's ownership is significant because the company's pipeline network is central to the country's fuel supply chain. However, the ownership changes do not automatically guarantee lower fuel prices or eliminate supply risks, and the immediate implications will depend on KPC's operational performance, investment decisions and ability to expand capacity in line with regional demand.
For Uganda's savers, borrowers and businesses, KPC's improved profitability and dividend payouts mean Uganda's government stake generates financial returns that can support public finances, though fuel supply and pricing will depend on the company's operational choices under its new ownership structure.