Kenyan investors could soon get an opportunity to invest in Nigeria’s Dangote Petroleum Refinery through the Nairobi Securities Exchange (NSE), under a proposed investment programme involving Stanbic Bank Kenya.
The plan would allow investors in Kenya to buy and sell depositary receipts linked to shares in Dangote Petroleum Refinery & Petrochemicals FZE using Kenya shillings on the NSE.
The actual shares would remain listed and held in Nigeria, where the Nigerian Exchange (NGX) would continue to serve as the primary market.
Stanbic Bank Kenya is part of the transaction advisory consortium working on the proposed programme, which was presented to Kenyan institutional investors and capital-market players during a pre-market engagement held on September 29, 2026.
Under the proposed arrangement, Stanbic would act as both the Receiving Bank and Custodian Bank.
As Receiving Bank, Stanbic would collect and safeguard money submitted by Kenyan investors seeking to participate in the offer.
The lender would also reconcile investor applications and manage foreign exchange conversion in line with the offer timetable.
Its role as Custodian Bank would involve holding the underlying Nigerian shares and maintaining the link between the shares held in Nigeria and the depositary receipts traded by investors in Nairobi.
Stanbic would also process corporate actions such as dividend payments, with dividends distributed to Kenyan investors in shillings.
This means every depositary receipt traded on the NSE would be backed by actual shares held in custody in Nigeria.
Stanbic Bank Kenya Head of Corporate and Investment Banking Jonathan Muga said the proposed programme reflects growing interest among Kenyan investors seeking investment opportunities across African markets.
“This mandate underscores the growing demand from Kenyan investors for seamless access to investment opportunities across Africa through trusted local market infrastructure,” Muga said.
He added that allowing investors to access a major Nigerian listing through the NSE would demonstrate how African capital markets could become more connected.
“By enabling access to a landmark Nigerian listing through the Nairobi Securities Exchange and in Kenyan shillings, this proposed programme showcases the value of an integrated pan-African custody and capital markets network,” he stated.
KSh Investment Opportunity
The proposed programme is targeting up to US$300 million in participation from Kenyan investors.
If approved, it would become the first unsponsored inward Global Depositary Receipt programme of its kind in Africa.
The development comes as Dangote Petroleum Refinery moves ahead with its initial public offering in Nigeria.
The offer involves 4.1 billion ordinary shares priced at NGN525 per share.
The IPO opened on September 14, 2026, and is scheduled to close on October 13, 2026.
Kenyan investors participating through the proposed programme would not have to directly trade the underlying shares on the Nigerian market.
Instead, licensed Kenyan stockbrokers would serve as authorised selling agents, allowing investors to access the opportunity through the local capital market.
The GDR issuer would then determine final allocations using a published allocation methodology.
However, the programme has not yet been finalised.
Its rollout remains subject to regulatory approvals, completion of the required documentation, investor demand and agreement on final terms.
The transaction consortium also includes Renaissance Capital, G&A Advocates LLP, Image Registrars Limited and Phanice Global, alongside the Nairobi Securities Exchange.
Renaissance Capital is serving as issuer, lead transaction adviser and sponsoring broker for the proposed programme.
