Dangote Buys 25% Stake in Kenyan Pipeline, Maps $50bn African Energy Push

Africa's richest man, Aliko Dangote, has acquired a 25 per cent stake in Kenya's petroleum products pipeline network as Dangote Industries expands fuel distribution across Africa. The move is part of a wider plan that includes projects in Ethiopia, Cameroon and Namibia, plus a proposed 700,000-barrel-a-day refinery in Kenya.

The President and Chief Executive of Dangote Industries Limited disclosed the plan in an interview with Financial Times journalist David Pilling. He said the company recently bought the Kenyan pipeline stake with support from the President of Kenya.

Kenya pipeline and regional corridors

Dangote said: 'Just let me tell you, yesterday, with the support from the President of Kenya, we bought 25 per cent of the pipeline network for the distribution of petroleum products.' He described the strategy as aggressive. 'We are very aggressive with that,' he said, referring to investments in pipelines, petroleum depots and other logistics infrastructure.

The company is pursuing petroleum pipelines, storage facilities and distribution corridors across East, Central and Southern Africa. It is developing a corridor connecting Djibouti and Addis Ababa in Ethiopia, supported by storage terminals and tank farms. It is also nearing completion of another infrastructure project in Cameroon. Namibia has emerged as a strategic gateway into Southern Africa. Dangote said Namibia's proximity to the Lagos refinery makes it attractive: 'From our refinery to Namibia is just about four days of steaming.' Refined products would be shipped to Namibia before distribution to Botswana, South Africa and potentially Zimbabwe and Zambia.

Lamu refinery and $50bn plan

The pipeline investment complements Dangote's proposed refinery in Lamu, Kenya, with projected processing capacity of about 700,000 barrels per day. Dangote cited East Africa's growing economies, expanding mining activities and increasing petroleum demand as drivers. He said the refinery would source crude oil from several international markets rather than rely exclusively on Kenya or Uganda. Lamu was selected after technical assessments considered deep-water access, marine infrastructure and other requirements for large-scale refining operations. He said the investment decision was reached within four months, although he alleged competing commercial interests tried to delay the project through legal action.

Dangote Industries has earmarked about $50 billion for investments between 2026 and 2030. Dangote said the programme would support industrial expansion and show that African businesses can undertake major infrastructure projects. 'The legacy we are trying to set up is how do we industrialise our continent?' he said. He urged African governments to protect domestic manufacturing. 'Allowing imports to displace local production means we are exporting our jobs out of the continent and importing poverty into the continent,' he warned. He identified unreliable electricity, weak financial systems and inadequate industrial policies as obstacles. With hundreds of millions of Africans still lacking electricity, he said investment in energy and manufacturing remains essential. 'The journey has started,' he declared. 'But now we're awake, and we will make it happen.'

What it means for fuel markets

The Kenyan pipeline stake and planned corridors could strengthen regional fuel supply chains, reduce distribution bottlenecks and create new markets for petroleum products from the Dangote Refinery in Lagos. The investments may expand Dangote's market reach while reducing dependence on fragmented distribution networks.

Separately, Dangote has announced plans to sell at least 10 per cent of his multibillion-dollar fertiliser business in Ethiopia to local investors. The sale will take place through the Ethiopian Securities Exchange once the $4 billion fertiliser plant begins operations and production stabilises.