Kenya Pipeline Company's (KPC) share price has risen by 10 per cent within a week of Nigerian billionaire Aliko Dangote acquiring a stake in the company, President William Ruto has announced.
Speaking during the groundbreaking ceremony of a cement processing factory in Kitui on Tuesday, October 27, Ruto attributed the increase to Dangote's investment, expressing confidence that the deal would strengthen KPC's financial performance.
The President noted that while the government previously owned the entire company, its remaining 35 per cent stake could eventually be worth as much as the 100 per cent ownership it held before the sale.
"In just one week of Dangote investing in the KPC, the share price had gone up by 10 per cent. In fact, in a short time, what we owned was 100 per cent, and now we own 35 per cent. That 35 per cent may be of the same value as the 100 per cent we initially owned in just a few years," Ruto stated.
The Head of State defended Dangote's acquisition, arguing that Kenyan citizens and other investors have the right to purchase shares in local companies through the Nairobi Securities Exchange (NSE).
Ruto also criticised some leaders whom he accused of attempting to undermine the investment, describing them as extortionists and share racketeers for questioning how Dangote was allowed to acquire a stake in KPC.
"Who told them that it is only they who can own things in this country? Every Kenyan citizen has a right to own any share they want to buy," Ruto insisted.
He warned that the government would take firm action against individuals seeking to interfere with investors.
The remarks come about a week after Dangote revealed that he had acquired a 25 per cent stake in KPC for approximately Ksh42.5 billion ($327 million).
The billionaire announced the investment during the 13th annual Financial Times Africa Summit in London on October 21, although he did not disclose which company within his business group had completed the transaction.
"We bought 25 per cent of their pipeline network for the distribution of petroleum products," Dangote stated.
The transaction involved the sale of 4.5 billion KPC shares at prices ranging between Ksh9.02 and Ksh9.36 per share, generating approximately Ksh42.46 billion.
However, the investment has also attracted scrutiny over the role of public funds in the transaction.
Kiharu MP Ndindi Nyoro alleged that public pension funds had been directed to purchase KPC shares before some of the holdings were subsequently sold to a private investor.
