Dangote stake lifts Kenya Pipeline shares 18% in two days

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Read History Go to My Account Log Out Enhanced by Google Africa Dangote stake lifts Kenya Pipeline shares 18% in two days Shares of Kenya Pipeline Company (KPC) rose nearly 19 percent in two trading sessions on the Nairobi Securities Exchange, adding

Listen to this article Share Shares of Kenya Pipeline Company (KPC) rose nearly 19 percent in two trading sessions on the Nairobi Securities Exchange, adding KSh30.71 billion to its market value after Aliko Dangote confirmed his acquisition of a 24.76 per cent stake in the company.

According to The Kenyan Wall Street, KPC shares climbed 9.92 percent to KSh10.75 in Friday morning trading, extending a 7.95 percent gain on Thursday, when the stock closed at a volume weighted average price of KSh9.78. The Friday price reflects intraday trading and not the final closing price.

The rally lifted the share price from KSh9.06 on Wednesday to KSh10.75, taking the company’s market capitalisation to about KSh195.36 billion from KSh164.65 billion.

The gains followed Dangote’s confirmation on Wednesday that his group had bought about 4.5 billion KPC shares in a KSh42.5 billion block trade on October 19. The transaction represented nearly a quarter of the company’s issued shares and made Dangote its largest private shareholder.

Trading activity also increased as investors responded to the disclosure. About 1.49 million shares changed hands on Thursday, 71.3 per cent more than the 867,866 shares traded the previous day.

Dangote’s entry has drawn attention because of the potential links between KPC’s pipeline network and his plans to build a major oil refinery in Lamu. Speaking at the Financial Times Africa Summit in London, he said the acquisition would support petroleum products distribution and outlined plans to invest an additional $1.5 billion in expanding KPC’s roughly 1,300 kilometre network, according to the Financial Times.

Details of the proposed expansion, including its financing and implementation timetable, have not been disclosed.

The share price gains also come after KPC reported stronger financial results for the year ended June 2026. Net profit rose 13.1 percent to KSh11.58 billion, while revenue increased 8.8 percent to KSh42.98 billion.

The company’s board recommended a first and final dividend of KSh0.32 per share, amounting to about KSh5.81 billion, subject to shareholder approval. Investors listed on the shareholder register at the close of business on November 30, 2026, will qualify for the proposed payment.

At Friday’s intraday price of KSh10.75, the proposed dividend implies a yield of about 2.98 per cent, down from 3.56 per cent at the KSh9.00 IPO price, as the rising share price reduces the yield for new investors.

KPC’s shares had traded around their KSh9.00 IPO price for much of the roughly three months before the latest rally. The sharp increase suggests that Dangote’s entry has changed investor expectations about the company’s growth prospects, although the share price response alone does not establish how much of the proposed expansion or future earnings is reflected in the valuation.

The company’s ability to sustain the gains will depend on its financial performance, the details and delivery of planned infrastructure investment, and whether the proposed regional energy projects translate into higher volumes and revenue.

Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance.