NAIROBI, Kenya – Kiharu MP Ndindi Nyoro has alleged that the sale of a 24.76 per cent stake in Kenya Pipeline Company (KPC) to an investor linked to Nigerian billionaire Aliko Dangote could be followed by further share acquisitions and a rights issue that would reduce the government’s ownership of the strategic energy company.
In a detailed statement published on X, Nyoro claimed President William Ruto and Dangote were working together on a plan to secure majority control of KPC, potentially raising the investor’s stake to 51 per cent or as much as 75 per cent.
Nyoro alleged that the plan would involve further purchases from state-backed institutions and a subsequent rights issue through which Dangote’s interests could increase if the government and other shareholders declined to take up their allocations.
Nyoro Outlines Alleged Route to Majority Ownership
According to Nyoro, the next phase would involve the National Social Security Fund (NSSF) and other public institutions selling any remaining KPC shares to the private investor.
He further alleged that KPC could issue additional shares through a rights issue, giving existing shareholders the opportunity to buy more shares in proportion to their holdings.
Nyoro claimed the government could decline to exercise its rights, citing a lack of funds, allowing the private investor to acquire a larger portion of the company. He also suggested that Uganda’s participation in the process could determine whether the investor reached the lower or higher ownership target he outlined.
The MP said the proposed transactions could leave the Kenyan government with a stake of slightly below 20 per cent if the plan unfolded as he described.
However, these projections depend on several unverified assumptions, including whether a rights issue will be proposed, the terms of any offer, how existing shareholders would respond and whether any regulatory approvals would be required.
Dangote’s 24.76pc Acquisition Is Confirmed
The allegations follow the transfer of approximately 4.5 billion KPC shares, equivalent to 24.76 per cent of the company, in a transaction valued at about Sh42.5 billion.
Dangote confirmed on Wednesday, October 21, that he had acquired approximately a quarter of KPC, according to remarks reported by Bloomberg and other media outlets.
The transaction involved shares previously held by state-backed institutions, including NSSF, the Public Servants Pension Scheme and the County Workers Pension Fund, alongside other public entities.
The sale attracted scrutiny because several public institutions had invested billions of shillings in KPC during its initial public offering earlier in 2026, when the government was seeking to ensure the offer attracted sufficient subscriptions.
Nyoro has argued that the institutions were pressured into buying the shares before being directed to sell them to a private investor.
However, the claim that the shares were sold at a loss requires qualification. Business Daily reported that the block transaction was executed at Sh9.02 per share, compared with the IPO offer price of Sh9. The reported transaction price was therefore slightly above the original offer price, although that comparison alone does not establish the institutions’ overall investment returns after costs, fees or other factors.
MP Calls for Disclosure of Refinery Agreement
Nyoro also called for the ownership structure of Dangote East Africa Petroleum Refinery to be made public and demanded disclosure of the investment agreement relating to the proposed Lamu refinery.
He argued that the public should be able to scrutinise the terms of major investments involving the government and private businesses, particularly where public institutions and strategic infrastructure are involved.
His concerns draw attention to the relationship between Dangote’s growing investments in Kenya’s petroleum sector and the proposed refinery, a project expected to serve the wider East African market.
Dangote’s acquisition of a significant stake in KPC gives his business interests a substantial position in a company responsible for transporting and storing petroleum products. The purchase also comes weeks after the groundbreaking of the planned Lamu refinery.
Nyoro alleged that the interests of government officials and private investors could overlap in the negotiations.
Questions Over KPC’s Future Ownership
The immediate transaction has changed KPC’s shareholder structure, but the future ownership scenarios outlined by Nyoro remain speculative unless supported by formal proposals, agreements or regulatory disclosures.
A rights issue would not automatically transfer the government’s shares to Dangote. Its effect would depend on the offer’s terms, shareholder participation, applicable regulations and the allocation of any shares not taken up.
The key questions now concern the identity and beneficial ownership of the acquiring entity, the terms governing the sale of the public institutions’ holdings and whether any further share transactions are planned.
Nyoro has called for greater transparency, arguing that Kenyans should be able to examine the agreements underpinning investments in strategic national infrastructure.
The allegations place renewed scrutiny on the government’s management of its remaining KPC stake and on the safeguards intended to protect public interests as private investors expand their influence in the energy sector.
