Aliko Dangote is taking his refinery ambitions beyond Nigeria, with plans to build a 700,000-barrel-per-day refinery in Lamu, Kenya, at an estimated cost of about $16 billion.
Construction is expected to begin with groundbreaking by October 2026, with the refinery potentially becoming operational around 2029–2030. Its location near the Lamu Port and the LAPSSET Corridor is strategic, allowing it to supply fuel not only to Kenya but to other East African markets.
The project will reportedly be financed through a combination of debt and equity, with Dangote expecting about 70% debt financing and 30% equity.
The Kenyan refinery follows the success of the 650,000-barrel-per-day Dangote Refinery in Nigeria, Africa’s largest refinery. After years of delays and more than $20 billion in investment, the Lagos facility began operations in 2024 and has since reached full capacity.
But Dangote’s Nigerian experience has also been marked by repeated clashes with the government and fuel marketers. His company has challenged the continued issuance of fuel-import licences, arguing that imports undermine domestic refining, while the government and industry players have raised concerns about competition and Dangote’s growing influence over the fuel market. There have also been disputes over access to Nigerian crude.
Dangote’s move is therefore more than another billion-dollar investment. It is an attempt to replicate Nigeria’s refining transformation in East Africa while navigating the government regulations, competition and political tensions that have accompanied his Nigerian refinery.
If construction begins as planned in October, Kenya could be on its way to becoming a major regional refining and fuel-supply hub.
