Lamu, Kenya — Nigerian businessman Aliko Dangote and Kenyan President William Ruto are set to break ground Wednesday on a $16 billion oil refinery in Lamu as East African countries work to expand regional petroleum-processing capacity.
The planned refinery will have a capacity of 700,000 barrels per day and is scheduled to be completed in 2030. The facility is intended to serve rising demand for refined petroleum products across East Africa while reducing the region’s reliance on imported fuels.
Dangote is looking to replicate the approach used for his group’s 700,000-barrel-per-day refinery in Nigeria. Kenya and Uganda are among the countries in the region pursuing development of their crude-oil resources.
Dangote has offered regional governments a combined 30% stake in the Kenyan refinery.
David Ndii, chief economic adviser to President Ruto, estimates regional demand for petroleum products at between 20 million and 30 million metric tons annually. A financier involved in African refinery projects said meeting that demand would require more than 1 million barrels per day of refining capacity.
The project comes as fuel prices have climbed sharply across the region. Rising petroleum costs have contributed to protests in countries including Kenya.
Dangote said the wider objective is to improve Africa’s self-sufficiency in petroleum products, as many countries on the continent continue to rely heavily on imported refined fuels.
The project also faces questions about whether adequate crude supplies and supporting energy infrastructure will be available to sustain the refinery.
Its development reflects a broader push by East African governments and investors to expand domestic energy infrastructure and reduce dependence on imported refined petroleum products.
If completed as scheduled, the Lamu facility would become a significant part of East Africa’s refining network and could supply petroleum products to markets across the region.
The project is expected to involve regional governments through the proposed combined 30% stake, while Dangote’s group plans to develop the facility based on the model of its large Nigerian refinery.
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