Dangote advances $17bn Kenya refinery project

Africa’s richest businessman, Aliko Dangote, has moved ahead with plans to establish a $17 billion oil refinery in Kenya, with preliminary engineering and site development already underway for what is expected to become East Africa’s largest refining facility.

The proposed refinery, to be located on Lamu Island along Kenya’s coast, will have a processing capacity of 700,000 barrels of crude oil per day and is designed to supply refined petroleum products to Kenya and neighbouring countries, reducing the region’s dependence on imported fuel.

According to company officials, the project has progressed beyond the planning stage, with the site selected, soil investigations ongoing and engineering and design work already in progress ahead of full-scale construction.

Vice President for Oil and Gas at Dangote Industries Limited, Devakumar Edwin, said Kenya had always been the preferred destination for the investment, adding that commercial and technical considerations informed the choice of Lamu Island.

The refinery, expected to take about three years to complete, will mirror the group’s flagship refinery in Lagos, which currently processes 650,000 barrels of crude oil daily.

The Kenyan project marks Dangote Industries’ first major refining investment outside Nigeria and forms part of the company’s strategy to strengthen refining capacity across Africa.

The company plans to finance the refinery through internally generated funds, bond issuances and proceeds from its proposed initial public offering.

The investment comes as the group simultaneously expands its Nigerian operations, where work is underway to increase the capacity of the Lagos refinery from 700,000 barrels per day to 1.4 million barrels per day by 2028.

Once both projects are completed, Dangote Industries expects its combined refining capacity across Nigeria and Kenya to reach 2.1 million barrels per day.

The company has also announced plans to invest an additional $46 billion between 2026 and 2028 across its refining, cement and fertiliser businesses to accelerate industrial development across the continent.

The Kenyan refinery is expected to strengthen East Africa’s energy security, reduce reliance on imported petroleum products, support regional trade and boost industrialisation as African countries seek to expand domestic refining capacity.