Nigerian billionaire Aliko Dangote has acquired a 24.76 percent stake in Kenya Pipeline Company (KPC) valued at about Sh42.5 billion from government institutions.

Bloomberg reported that Dangote, the chief executive of Dangote Industries, announced the transaction in London, saying the investment would support the distribution of petroleum products.

The deal involves the purchase of 4.5 billion shares previously held by state institutions, including the National Social Security Fund (NSSF) and the Unclaimed Financial Assets Authority (UFAA).

The acquisition follows KPC’s initial public offering earlier this year, when the government stepped in to buy shares amid low uptake from private investors.

The transaction also comes a month after President William Ruto and Dangote broke ground on a planned oil refinery in Lamu, with an estimated investment of between Sh2 trillion and Sh2.2 trillion, or about $16 billion.

The refinery is expected to take 40 months to complete and will have a planned processing capacity of 700,000 barrels of crude oil per day.

It is intended to supply fuel to Kenya and other regional markets, including Uganda and Tanzania.