Kenyan investors have been warned against unauthorised offers for shares in Dangote’s Nigerian refinery, even as President William Ruto pushes ahead with plans for a separate KSh2.2 trillion refinery project in Lamu.
The Capital Markets Authority (CMA) issued the warning on Monday, September 21, following growing interest among Kenyans in the Dangote Petroleum Refinery and Petrochemicals IPO.
The regulator said the Nigerian share offer is regulated in Nigeria and has not been submitted for approval in Kenya.
“This public offer is regulated in Nigeria and has not been submitted for consideration and approval by CMA under the applicable Kenyan legal and regulatory framework,” the authority said.
CMA urged Kenyans to verify the authenticity of any prospectus or offering document before sending money or providing personal and financial information.
The authority also directed investors to rely only on communication from the relevant regulators, the company and authorised channels.
Kenyans were further advised to conduct investment transactions only through licensed capital markets intermediaries.
The warning comes as the Dangote IPO attracts strong interest across Africa.
The offer opened in Nigeria on September 14 and involves 4.1 billion shares priced at 525 Nigerian naira each. The sale could raise more than KSh200 billion if fully subscribed.
The current offer is primarily domiciled in Nigeria, meaning Kenyan investors do not have the same direct access available to Nigerian investors.
The Nairobi Securities Exchange, however, says it is working on a solution that could allow Kenyans to participate, while a future cross-listing at the NSE could make the shares easier to trade locally.
The situation is different in Rwanda, where authorities have been working with United Capital Financial Services to facilitate participation by eligible Rwandan investors in the Nigerian IPO.
Rwanda’s stock exchange has also said discussions are ongoing on a possible cross-listing or dual listing of the refinery’s shares.
The development has raised questions among Kenyan investors over why the Nigerian offer is not currently available to them through a similar regulated local arrangement.
The confusion has been heightened by Ruto’s separate engagement with Dangote in New York.
On Monday, Ruto met Dangote and Africa Finance Corporation CEO Samaila Zubairu to discuss financing and preparations for the proposed East Africa refinery in Lamu.
“We are ready to break ground on the East Africa refinery in Lamu, a transformative project that will enhance the region’s energy security, deepen local value addition, create jobs and advance our industrialisation agenda,” Ruto said.
The Lamu project is estimated at KSh2.2 trillion and is expected to have a processing capacity of about 700,000 barrels of crude oil per day.
The government says the refinery could create more than 60,000 jobs and strengthen Kenya’s position as an energy and industrial hub in the region.
However, the proposed Lamu refinery should not be confused with the Nigerian refinery currently being offered to investors.
The Nigerian IPO is intended to raise money for the expansion of Dangote’s existing refinery in Lagos, while the Lamu project is a proposed new facility in Kenya.
The Nigerian Securities and Exchange Commission has also previously warned investors against unauthorised Dangote IPO promotions, including schemes asking people to pre-fund accounts or secure guaranteed allocations.
For Kenyan investors, the message from the CMA is therefore clear: interest in Dangote’s refinery does not automatically mean that every online offer to sell its shares to Kenyans is legitimate.
The regulator urged members of the public to verify investment offers before committing their money, as the race for access to one of Africa’s biggest industrial projects continues.