CS Wandayi: Dangote’s KPC stake signals confidence in Kenya’s economy

By  Winnie Atieno

Correspondent

Nation Media Group

What you need to know:

• The investment, valued at about Sh42.5 billion, makes Mr Dangote the company’s second-largest shareholder.
• The recent acquisition came weeks after the groundbreaking of Dangote's planned Sh2 trillion oil refinery in Lamu.

Energy Cabinet Secretary Opiyo Wandayi has described Nigerian industrialist Aliko Dangote’s acquisition of a 24.76 per cent stake in Kenya Pipeline Company (KPC) as a vote of confidence in Kenya’s economy.

The investment, valued at about Sh42.5 billion, makes Mr Dangote the company’s second-largest shareholder after the government, following the sale of shares by state-backed institutions.

The recent acquisition came weeks after the groundbreaking of his planned Sh2 trillion oil refinery in Lamu, which is expected to serve Kenya and the wider East African market.

Mr Wandayi said there is a good reason why Kenya, under President William Ruto’s leadership, was attracting major investments, including the planned Dangote East Africa Petroleum Refinery and Petrochemicals Special Economic Zone in Lamu.

“Investors don’t just come to a country; they are attracted by an enabling environment. Were it not for President Ruto, perhaps this investment would have been rerouted to another country. You also heard that Mr Dangote is planning to acquire shares in KPC at almost Sh45 billion. That is a very big vote of confidence in our economy and that is the kind of investment we have been looking for since we got independence,” he said.

Speaking at a fundraising event in support of the construction of a community hall for the Malindi New Nyanza Women Group in Kilifi County, the CS said Kenya is making strides in development through the leadership of President Ruto.

Mr Wandayi said reliable and affordable electricity was essential to unlocking opportunities for women, supporting small businesses, improving community facilities and stimulating local economic growth.

Through the Last Mile Connectivity Programme and other energy initiatives, Mr Wandayi said the government was committed to expanding electricity access and ensuring more households, institutions and businesses could participate in Kenya’s economic transformation.

He said Kilifi County had been allocated Sh2 billion in the current financial year to connect about 18,000 households to electricity, as part of the government’s efforts to address regional development disparities.

“The President has decided to deal with development marginalisation that affected the Coast region for decades. He wants to ensure equity across the country. That is why, this financial year, Kilifi has been allocated Sh2 billion to connect about 18,000 households to electricity. This money has never been allocated for that purpose before. Many Kenyans are living in darkness, but do not worry, the government has begun ensuring all homes are connected to the national grid,” said Mr Wandayi.

He said the government was also planning to construct a Sh2.8 billion electricity transmission line from Malindi to Garsen in Tana River County, which would include two substations.

Another transmission line, linking Kilifi, Malindi and Weru, is planned at a cost of Sh6.6 billion and would also include two substations.

“The two projects will boost electricity supply in this region. This is why Dr Ruto should be re-elected; he deserves it. Kilifi has been ODM’s stronghold, but you know we are now in a broad-based government. We must strengthen this coalition ahead of the General Election,” said Mr Wandayi.

watieno@ke.nationmedia.com

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