Dangote Selects Kenya’s Lamu for $17 Billion East Africa Mega-Refinery
Lamu, Kenya – Nigerian billionaire Aliko Dangote has chosen the island of Lamu off Kenya’s coast as the site for a massive new oil refinery, marking his group’s largest investment outside Nigeria and a significant boost for East African energy independence.
The proposed facility will have a capacity of 700,000 barrels per day, surpassing other refineries in the region and mirroring the scale of Dangote’s landmark Lekki refinery in Nigeria. Estimated to cost up to $17 billion, the project will be financed through the company’s internal cash flow, bond issuances, and an initial public offering of shares.
Edwin Devakumar, vice president for oil and gas at Dangote Industries, confirmed the decision on Tuesday, stating that Kenya was the preferred location from the outset after detailed commercial, technical, and logistical assessments. Soil testing and engineering design work have already begun, with construction potentially starting later this year.
The refinery is expected to process crude oil into refined petroleum products, significantly reducing East Africa’s dependence on imported fuels. It will serve markets across Kenya, Uganda, South Sudan, the Democratic Republic of Congo, and potentially other neighboring countries. Dangote has extended an invitation to Tanzania to participate in the Lamu investment.
Kenyan President William Ruto has welcomed the announcement, linking it to growing foreign direct investment in the country. The project is anticipated to create thousands of jobs during construction and operations while stimulating logistics, port infrastructure, and related industries along the LAPSSET corridor.
This development ends months of speculation over whether the refinery would be built in Kenya or Tanzania. Industry analysts view it as a major step toward regional energy security and economic integration.
About The Author
SUBSCRIBE TO OUR NEWSLETTER
