Kenya has confirmed that Aliko Dangote, billionaire owner of Dangote Refinery will break the ground on September 30 for commencement of construction of a 700,000-barrel-per-day refinery on its Lamu Island, which will strengthen Kenya’s position as a regional petroleum-processing hub.
Authorities in the East African country said Dangote spoke in Gaborone, Botswana during a meeting with Botswana President Duma Boko.
A Kenyan government statement said: “Nigerian billionaire Aliko Dangote has set September 30, 2026, for the groundbreaking of his planned oil refinery in Lamu, giving a firm start date to the Sh2.2 trillion project”.
“We are launching it on September 30,” it quoted Dangote as saying.
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.
The project is expected to take up to three years to complete, and will supply refined petroleum products to Kenya and neighbouring countries (Tanzania, Uganda, Rwanda), helping to reduce the region’s dependence on imported fuel.
The Lamu refinery would be Dangote’s biggest refining investment outside Nigeria, and follows the establishment of his 650,000-700,000-barrel-per-day facility in Lagos.
Energy industry watchers say the project is intended to replicate the scale of Dangote’s Nigerian downstream investment while positioning Kenya as a regional hub for petroleum processing and fuel supply. The wider development is expected to create about 60,000 jobs.
Official position indicates that Lamu was selected as the site after Dangote Industries considered other locations in East Africa, including Tanzania.
Preliminary work, including site selection, soil testing and engineering and design, had already begun by July.
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 his nation’s energy and industrial sectors.
Energy analysts adduce that the Kenyan president is bolstered by Dangote’s 10 percent stake valued at $500 million (about Sh64.74 billion), offered to Kenya. Additionally, the billionaire offered East African countries a combined 30 percent stake in the refinery and associated project.
His government is already planning to build support infrastructure around the refinery, including a 1,000-megawatt power plant and a special economic zone intended to support manufacturing and other industries.
Meanwhile, Rwanda and Ethiopia have expressed interest in participating in the regional shareholding.
