Dangote Stake Defence: Ruto Warns Brokers and Extortionists Against Interfering With Kenya Pipeline DealDangote Stake Defence: Ruto Warns Brokers and Extortionists Against Interfering With Kenya Pipeline Deal
Key Highlights
- President William Ruto has defended Aliko Dangote's purchase of almost a quarter of Kenya Pipeline Company and warned brokers against interfering.
- Critics led by Kiharu MP Ndindi Nyoro question how the shares were sold, but his allegations about public institutions have not been independently established.
- Ruto also said the share price had risen about 10% this week, a gain he argued should benefit Kenyans rather than a few individuals.
President William Ruto has publicly defended Nigerian billionaire Aliko Dangote's purchase of almost a quarter of Kenya Pipeline Company (KPC), telling critics that "extortionists and brokers seeking to interfere with investment opportunities will not be tolerated".
The remarks, made during his Ukambani tour and reported on 25 October 2026, are the President's first public answer to weeks of questions over a block trade that Mwenendo has covered since it was disclosed. The stake, worth KSh 42.5B ($327.4M), is the largest single change in KPC's ownership since the company listed on the Nairobi Securities Exchange.
What the President said
Ruto said the investment would benefit Kenyans and rejected claims that the shares were overpriced. In Mwingi he said the critics had earlier wanted government entities to buy the shares, and described them as "shylocks" who hoped to buy cheaply and sell at a profit.
He also said KPC's share value had risen about 10% this week and that the gains should go to Kenyans, not to a few individuals. As Mwenendo earlier reported, KPC shares jumped 7.9% to KSh 9.78 ($0.08) on 22 October, the day the buyer was confirmed.
Ruto cited the Dangote investment as an example of the deals he is pursuing, as the government seeks to lift foreign direct investment from KSh 415.4B ($3.2B) to KSh 1.04T ($8B) in the coming years.
The questions that remain
Opposition figures have challenged the sale. Kiharu MP Ndindi Nyoro, leader of the People's Party of Kenya, has questioned how the shares were sold and what role state-linked institutions played. He alleges that public institutions were encouraged to buy shares in KPC's initial public offering before a large block went to Dangote, and wants to know whether those institutions earned adequate returns. His allegations have not been independently established.
The terms of the sale, the returns secured by the sellers and the effect of the new ownership on KPC's governance have not been published in full. The stake sits just under the 25% threshold at which takeover rules require an offer to all shareholders; Mwenendo explained the rules that let 24.76% of KPC change hands, and the Capital Markets Authority oversees those rules.
Why a refiner owning pipeline shares matters
KPC moves fuel for Kenya and the region, and Dangote is building a refinery in Lamu. That is why the sale has fed a wider debate on privatisation and on how to balance private capital against public interest. Mwenendo's editorial argued that Dangote's quarter needs a referee, with a public answer from the Competition Authority of Kenya by 30 November.
Investors will be watching KPC's share price when the NSE reopens on Monday for any reaction to the President's comments.
In Summary
- Who defended the stake?
- President William Ruto defended Aliko Dangote's purchase; Kiharu MP Ndindi Nyoro leads the criticism.
- What was said?
- Ruto said extortionists and brokers seeking to interfere with investment will not be tolerated and that the deal will benefit Kenyans.
- When?
- Remarks were reported on 25 October 2026.
- Where?
- During the President's Ukambani tour, including Mwingi.
- Why does it matter?
- KPC moves fuel for Kenya and the region, and the buyer is building a refinery in Lamu.
- How big is the stake?
- About 24.76%, worth KSh 42.5B ($327.4M), just under the 25% takeover threshold.