Obasanjo, others present as Dangote launches $16bn refinery in Kenya

Africa’s richest businessman, Aliko Dangote, on Wednesday flagged off the construction of a $16 billion oil refinery in Kenya, marking a major milestone in efforts to boost fuel production and strengthen energy security across East Africa.

Dangote, alongside Kenyan President William Ruto, former Nigerian President Olusegun Obasanjo, and other African leaders, performed the groundbreaking ceremony for the refinery at Lamu Port, where the facility is expected to replicate the success of the 700,000-barrel-per-day Dangote Refinery in Lagos, Nigeria.

The project, scheduled for completion in 2030, is expected to reduce East Africa’s dependence on imported refined petroleum products, lower fuel costs and conserve foreign exchange spent on fuel imports.

Speaking at the event, Dangote said the refinery was designed to make East Africa self-sufficient in refined petroleum products and reduce the continent’s reliance on imports.

“When you look at East Africa, and indeed most of Africa’s 54 countries, they import petroleum products. Our goal is to make the region self-sufficient,” he said.

The billionaire businessman disclosed that his company had offered regional governments a combined 30 per cent equity stake in the refinery, while a $450 million engineering contract has been awarded to Engineers India Limited.

Ruto was joined at the ceremony by Ethiopian Prime Minister Abiy Ahmed, Ugandan President Yoweri Museveni, and Togolese President Jean-Lucien Savi de Tové, underscoring the regional significance of the project.

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Located on Kenya’s northern coast, Lamu Port is a key component of Kenya’s transport corridor linking the country’s northern region and neighbouring landlocked states to the sea. The refinery is expected to strengthen that corridor while supporting regional industrialisation.

Kenyan officials estimate East Africa’s annual demand for petroleum products at between 20 million and 30 million metric tonnes, with experts saying the region requires refining capacity of more than one million barrels per day to meet demand.

Beyond fuel supply, the refinery is expected to stimulate petrochemical and bitumen production, create more than 50,000 jobs, and support broader economic growth across the region.

The project comes as East African countries grapple with elevated fuel prices driven by global supply disruptions, reinforcing calls for greater regional refining capacity.