Dangote Acquires 25% Stake in Kenya’s Oil Pipeline Network
Dangote disclosed this during a conversation with David Pilling, Africa Editor of the Financial Times, at the Financial Times Africa Summit 2026 in London, United Kingdom.
He said the acquisition was made with the support of the Kenyan President, adding that the Group was pursuing similar petroleum distribution infrastructure projects in Djibouti, Ethiopia, Cameroon and Namibia to strengthen the movement of refined petroleum products across the continent.
In East Africa, Dangote Industries is developing a distribution corridor connecting Djibouti to Addis Ababa, Ethiopia’s capital, with tank farms planned to support the storage and transportation of petroleum products.
Dangote said a project in Cameroon was nearing completion, while Namibia had been identified as a strategic entry point for the Group’s expansion into Southern Africa.
He explained that the location would provide an efficient route for transporting refined products from the Dangote Petroleum Refinery in Lagos to Southern African markets, with the sea journey to Namibia expected to take about four days.
The Group plans to distribute the products from Namibia to other countries, including Botswana and South Africa. Its proposed distribution network would also extend through Zimbabwe and Zambia, supported by strategically located storage facilities and transportation infrastructure.
The pipeline acquisition comes alongside plans by Dangote Industries to establish a refinery in Lamu, Kenya, with a proposed capacity of approximately 700,000 barrels per day.
Dangote said the investment was informed by East Africa’s industrial and mining activities, increasing energy demand and persistent difficulties in accessing diesel and other petroleum products.
He explained that the proposed refinery would source crude oil from multiple markets rather than rely exclusively on supplies from Uganda or Kenya.
According to him, Lamu emerged as the preferred location after technical assessments of several sites, with deep-water access, marine infrastructure and adequate water resources among the major considerations.
Dangote said the investment decision was reached within four months but alleged that commercial interests had attempted to frustrate the project through legal proceedings shortly before its public unveiling.
Beyond expanding its energy infrastructure, Dangote called on African governments to protect domestic industries against unfair foreign competition, warning that excessive reliance on imports could weaken local manufacturing and employment.
He argued that African countries needed policies that supported emerging industries, noting that major economies were increasingly adopting measures to protect their manufacturing sectors.
Dangote warned that allowing imported products to displace locally manufactured goods could lead to job losses and deepen poverty across the continent.
He also disclosed that the Group had earmarked approximately $50bn for investments between 2026 and 2030 to expand its operations and encourage greater private-sector participation in Africa’s industrial development.
The industrialist identified unreliable electricity supply as one of the major barriers to industrialisation, particularly in mining and mineral processing, where inadequate power limits countries’ ability to process natural resources before exporting them.
He said approximately 650 million Africans lacked access to electricity, stressing that improved power supply would create opportunities for manufacturing, employment and economic diversification.
Dangote maintained that Africa’s vast agricultural land, mineral resources and youthful population provided a strong foundation for industrial growth, despite the continent’s persistent poverty.
