Aliko Dangote plans to invest $1.5 billion in expanding the network as he builds a second major refinery

Africa’s richest man Aliko Dangote has bought a roughly 25% stake in Kenya’s fuel pipeline operator as part of a wider push to expand petroleum distribution across the continent.

The Nigerian industrialist announced the acquisition at the Financial Times Africa Summit in London on Wednesday. Kenya Pipeline Company (KPC) operates pipelines and storage facilities supplying Kenya and other regional markets.

“We bought 25% of their pipeline network for the distribution of petroleum products,” Dangote said.

The purchase involved 4.5 billion KPC shares worth $335 million, bought at a slight premium to the last-traded price, the FT reported. Dangote said the acquisition and planned network expansion formed part of a continent-wide fuel distribution strategy.…