Africa’s richest businessman, Aliko Dangote, has officially commenced work on a proposed $16 billion oil refinery in Kenya, a major investment expected to reshape the energy landscape across East Africa.
The groundbreaking ceremony took place on Wednesday at Lamu Port in northern Kenya, with Kenyan President William Ruto, former Nigerian President Olusegun Obasanjo and other African leaders in attendance.
The refinery, which is scheduled for completion in 2030, is expected to expand the region’s capacity to produce refined petroleum products and reduce its heavy dependence on fuel imports.
Speaking at the ceremony, Dangote said the project was driven by the need to increase Africa’s ability to meet its own energy requirements.
“East Africa, like most of Africa’s 54 countries, imports petroleum products. Our objective is to make the region self-sufficient,” he said.
The planned facility will draw on the experience of Dangote’s 700,000-barrel-per-day refinery in Lagos, Nigeria, while serving markets across East Africa.
Dangote also revealed that his company had proposed offering regional governments a combined 30 per cent stake in the refinery. The arrangement, he said, would allow participating countries to have a direct ownership interest in the project.
According to the businessman, a $450 million engineering contract for the refinery has already been awarded to Engineers India Limited.
The groundbreaking attracted several African leaders, highlighting the regional significance of the investment. President Ruto was joined by Ethiopian Prime Minister Abiy Ahmed, Ugandan President Yoweri Museveni and Togolese President Jean-Lucien Savi de Tové, among other dignitaries.
The refinery will be located within the Lamu Port development on Kenya’s northern coastline. Lamu is a key component of Kenya’s broader transport and trade infrastructure strategy, designed to provide a gateway to international markets while improving connectivity between northern Kenya, neighbouring countries and global shipping routes.
The integration of a major refinery into the Lamu infrastructure network could further expand the economic importance of the corridor by supporting the transportation and distribution of petroleum products and other industrial commodities.
East Africa currently consumes an estimated 20 million to 30 million metric tonnes of petroleum products annually, according to Kenyan officials. Industry estimates suggest that the region could eventually require more than one million barrels per day of refining capacity to keep pace with demand.
Beyond the production of conventional fuels, the proposed refinery is expected to support additional industrial activities, including petrochemical manufacturing and bitumen production.
The project is also projected to generate more than 50,000 jobs, while creating opportunities for local businesses through supply chains, construction, logistics and other supporting industries.
The investment comes as East African economies continue to contend with high fuel costs and significant dependence on imported refined petroleum products.
If completed as planned, the refinery could become a major regional energy hub, increasing domestic refining capacity and supporting the wider industrial and infrastructure development of East Africa.
Dangote Launches $16bn Refinery Project in Kenya
