Kenyans interested in buying shares in the Dangote Refinery have been urged to establish whether the investment channels they are using are legitimate, following a warning from the Capital Markets Authority (CMA).
The regulator has raised concerns over the circulation of information about the refinery’s Initial Public Offering (IPO), making it clear that the share sale has not received approval to operate within Kenya’s capital markets framework.
The warning comes at a time when the offer is attracting attention from investors across Africa, including those looking for opportunities to own a stake in one of the continent’s major industrial projects.
CMA explained that the Dangote Petroleum Refinery and Petrochemicals FZE share sale falls under Nigerian regulation. The offer has not been presented to the Kenyan authority for assessment or approval under the country’s applicable laws.
The regulator’s position places responsibility on prospective Kenyan investors to establish the legitimacy of the information they receive before committing their money. Individuals have also been advised to exercise caution when asked to provide personal details, financial information or payments through investment platforms.
The refinery began its IPO on the Nigerian Exchange on September 14, with plans to raise more than KSh211 billion through the issuance of 4.1 billion ordinary shares. The offering is priced at five Nigerian naira per share, according to the details provided, and investors can participate with a minimum purchase of 10 shares.
The offer is expected to close on October 13, with trading projected to begin in late November. The transaction places the refinery’s potential valuation at approximately KSh6.4 trillion.
Dangote has presented the IPO as an opportunity to expand public ownership of the refinery and encourage greater participation in African stock markets. During an interview with CNN journalist Larry Madowo, he said the initiative had attracted interest beyond Nigeria.
“Well, I think it’s an IPO not only for Nigerians. We’ve got a lot of interest from all over Africa, and we’re selling shares, we’re trying to bring in democracy to our stock markets,” Dangote said.
He further expressed confidence in attracting 10 million shareholders and outlined plans for stadium-based annual general meetings.
For Kenyans considering the opportunity, CMA has recommended relying on information issued through official regulatory and company channels. The authority has also directed investors to use licensed capital markets intermediaries listed on licensees.cma.or.ke, rather than sending money through unverified platforms.
