Nigerian billionaire Aliko Dangote has set September 30, 2026, for the groundbreaking of his planned Sh2.2 trillion oil refinery in Lamu, Kenya, marking a major expansion of Dangote Industries into East Africa.
Dangote announced the firm start date while speaking to investors and analysts in Gaborone, Botswana, according to Reuters, confirming that preliminary work including site selection, soil testing and engineering design had already begun by July.
Dangote Lamu Refinery: 700,000 Barrels Per Day Capacity
The proposed refinery will have a processing capacity of 700,000 barrels of crude oil per day, making it the largest refinery in East Africa once completed and the biggest in the region's history.
“We are launching it on September 30” - Aliko Dangote
Lamu was selected as the site after Dangote Industries considered other locations in East Africa, including Tanzania. The refinery is expected to take up to three years to complete and will supply refined petroleum products to Kenya and neighbouring countries, helping reduce the region's dependence on imported fuel.
60,000 Jobs, $500M Kenya Stake And Industrial Zone
The refinery is expected to form part of a wider industrial development in Lamu, with plans for supporting energy, manufacturing, storage and logistics facilities. President William Ruto's administration has backed the project as a major investment in Kenya's energy sector.
The wider development is expected to create about 60,000 jobs, according to government projections. The government is also planning supporting infrastructure around the refinery, including a 1,000-megawatt power plant and a special economic zone intended to support manufacturing and other industries.
Dangote has offered East African countries a combined 30 per cent stake in the refinery and associated project. Kenya has been offered a 10 per cent stake valued at about Sh64.74 billion, equivalent to $500 million, while Rwanda and Ethiopia have also expressed interest in participating.
What This Means After Lekki Refinery Success
This new project comes after the success of Dangote's $20 billion Lekki refinery in Lagos, which began operations in 2024 and is Africa's largest single-train refinery. The Lamu refinery replicates that model for the East African market.
M2NICE Analysis: This is a game-changer for East Africa's fuel market. With Dangote controlling refining capacity in both West and East Africa, fuel import costs in Kenya, Uganda and Tanzania could drop significantly. For Nigeria, it proves the Lekki refinery model is now an exportable blueprint for African industrialisation.
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