Nigerian industrialist Aliko Dangote and President William Ruto are set to launch construction of a $16 billion oil refinery in Lamu, Kenya, in what is expected to become one of East Africa’s largest industrial investments. The groundbreaking is scheduled for September 30, 2026.
The proposed refinery will have a processing capacity of approximately 700,000 barrels of crude oil per day and is targeted for completion around 2030. It is designed to supply refined petroleum products to Kenya and other markets across East and Central Africa, potentially reducing the region’s dependence on imported refined fuel.
The project is being developed at Lamu Port along the LAPSSET corridor. Construction preparations have already begun, with a vessel recently delivering about 2,930 tonnes of construction machinery and materials to Lamu Port.
Regional ownership
Dangote has proposed giving regional governments a 30% stake in the refinery, with Kenya and other East African countries expected to participate. The structure is intended to give regional governments and investors an ownership interest in the project while helping mobilise financing.
Engineers India has also secured a $450 million contract to provide project-management and engineering services for the refinery and associated petrochemical facilities.
Jobs and industrial impact
The refinery is expected to create tens of thousands of jobs, with estimates from project proponents reaching about 50,000–60,000 positions. Dangote and the Kenyan government also expect the facility to stimulate related industries, including petrochemicals, fertiliser, chemicals and packaging.
The project, however, faces a land-related legal challenge. A Kenyan court has ordered parties to maintain the existing status quo at the proposed site pending further proceedings, with a hearing scheduled for October 14. Dangote has said the ruling will not prevent the scheduled groundbreaking, although it could affect activities at the site.
If completed as planned, the Lamu refinery would significantly expand Kenya’s petroleum-processing capacity and could position Lamu as a major energy and industrial hub for the region.
References: Dangote’s Proposed Lamu Refinery Could Generate 1,000MW of Electricity
