- Project valued at US$15 to US$17 billion with capacity of 700000 barrels per day.
- Construction expected to begin in 2026 with completion within 30 to 36 months.
- Facility to supply refined fuel across East Africa and reduce import dependence.
Dangote Industries Limited has confirmed that Kenya will host a major new oil refinery in the port city of Lamu, ending months of competition among Kenya, Tanzania and Uganda for the project.
The planned facility will process 700000 barrels of crude oil per day, positioning it as the largest refinery in East Africa and the second largest in Africa. The development will be located on Lamu Island, selected for its deep water port and its strategic role within the Lamu Port South Sudan Ethiopia Transport corridor.
Early stage work including engineering studies, site surveys and soil testing is already under way. Construction is scheduled to begin later in 2026, with a build period of about 30 to 36 months.
The Dangote Group plans to finance the project through a mix of internal cash flow, bond issuances and a proposed initial public offering.
Kenya was selected ahead of Tanzania and Uganda based on stronger logistics infrastructure, deeper port capacity and a larger domestic fuel market. Dangote leadership also cited commercial and technical factors in reaching the final decision, following engagement with regional governments.
The refinery will mirror the scale and model of Dangote’s existing facility near Lagos in Nigeria. Once operational, the Lamu plant is expected to supply refined petroleum products to Kenya, Uganda, Tanzania, South Sudan and Ethiopia.
The project is set to significantly reduce East Africa’s reliance on imported fuel and is expected to play a central role in reshaping regional energy trade along the Indian Ocean corridor.
Author: Bryan Groenendaal
