Africa’s richest man, Aliko Dangote, has confirmed plans to build a new 700,000 barrels-per-day (bpd) oil refinery in Kenya, ending months of speculation over where his next major refining project in East Africa would be located.
The proposed refinery will be constructed in Lamu, a coastal county in Kenya, according to Edwin Devakumar, Vice President of Oil and Gas at Dangote Industries Limited.
Speaking to AFP, Devakumar said the project is expected to take approximately 30 months to complete and will become one of the largest refining facilities in East Africa.
The announcement settles speculation that had seen both Kenya and Tanzania emerge as potential hosts for the multi-billion-dollar investment.
Why Kenya Was Chosen
Dangote Industries had previously evaluated several locations across East Africa before settling on Lamu.
Earlier reports suggested that Mombasa was the preferred destination, while Tanzania also remained under consideration.
Last month, Aliko Dangote visited Tanzania, where he met President Samia Suluhu Hassan to discuss the planned refinery.
According to a statement issued after the meeting, Dangote explained the commercial and technical reasons behind choosing Kenya and invited Tanzania to participate in the investment despite not hosting the facility.
Building on Nigeria’s Refinery Success
The Kenyan refinery will mirror the scale of the Dangote Petroleum Refinery in Lagos, which began operations in 2024 after years of construction.
With a refining capacity of 650,000 barrels per day, the Lagos refinery is currently Africa’s largest.
Dangote Industries has also announced plans to expand the Nigerian refinery to 1.4 million barrels per day by 2028, a move that would make it the largest single-train refinery in the world.
The proposed Kenyan project reflects the group’s ambition to strengthen fuel refining capacity across Africa while reducing the continent’s dependence on imported petroleum products.
Boost for Kenya’s Energy Sector
The refinery is expected to significantly strengthen Kenya’s position as an energy hub for East Africa.
Once operational, it could supply refined petroleum products to neighbouring countries, improve regional fuel security and reduce import costs.
The investment is also expected to generate thousands of direct and indirect jobs during construction and operation, while attracting additional investment into Kenya’s energy and logistics sectors.
Lamu’s strategic location along the Indian Ocean is expected to enhance the refinery’s access to international shipping routes and regional export markets.
Dangote Expands African Footprint
The Kenyan refinery marks another major expansion for Dangote Industries beyond Nigeria.
Over the years, the group has invested across several African countries in sectors including cement, fertiliser, sugar, salt and energy.
The planned refinery reinforces Dangote’s long-term strategy of building large-scale industrial projects capable of transforming African manufacturing and reducing dependence on imports.
If completed on schedule, the project will become one of the most significant private-sector investments in Kenya’s energy industry.
