Dangote Plans $16B Kenya Refinery in Lamu
Dangote Industries is preparing a 700,000-barrel-per-day oil refinery in Lamu, Kenya, with an expected investment of $15 billion to $16 billion and completion targeted for 2030.
By Carolina Curiel
Published September 9, 2026
What Readers Should Know
- The planned Lamu refinery would have capacity of 700,000 barrels per day.
- Estimated investment is between $15 billion and $16 billion.
- Dangote Industries plans a groundbreaking ceremony later this month, with completion anticipated by 2030.
- Kenya spent about $4 billion on fuel imports last year.
- Securing sufficient crude supply remains a key challenge because Kenya does not yet have commercial-scale production.
Dangote Targets Lamu for Major Refinery Project
MONTREAL (Oil Monster): Nigerian billionaire Aliko Dangote is reportedly preparing to build a major oil refinery on Kenya’s coast as he seeks to replicate the model of his refinery in Lagos, Nigeria.
The proposed facility would be located within the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) special economic zone.
The 700,000-barrel-per-day refinery is expected to require an investment of between $15 billion and $16 billion. Dangote Industries plans to hold a groundbreaking ceremony later this month, with completion anticipated by 2030, according to sources.
Kenya Looks to Reduce Reliance on Fuel Imports
The refinery is expected to help Kenya reduce its dependence on imported petroleum products. The country spent about $4 billion on fuel imports last year.
Crude Supply Remains a Major Challenge
Securing enough crude oil continues to be a challenge. Kenya has yet to develop commercial-scale production, while potential supplies from Uganda and South Sudan face transportation and infrastructure constraints.
As a result, the refinery may need to rely heavily on imported crude transported by sea.
Funding Could Include Bonds, IPO and Regional Equity
Dangote Group intends to fund the refinery through internal cash, bonds and a potential initial public offering.
Regional governments, including Uganda, Tanzania, Rwanda and South Sudan, could also take equity stakes in the project.
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