Aliko Dangote, Africa’s wealthiest individual, has disclosed that construction of a major new oil refinery in Lamu, Kenya, is set to commence by October, with the completed facility expected to boost East Africa’s energy independence significantly. Aliko Dangote said construction will take about four years. Speaking to the BBC, Dangote said the ground-breaking would take place no later than October and that the project should be completed in under four years. The plans for the refinery have gone very far with Kenya because what we are trying to do is to make sure that in most African countries we make them sufficient in their own energy needs,” Dangote said. What is the scale and cost of Lamu Oil Refinery? The proposed refinery is designed to process 700,000 barrels of crude oil daily, which would rank it among the largest oil-processing facilities on the continent. Its intended catchment area covers much of East Africa, positioning Kenya as a regional petroleum hub. Dangote revealed that the overall project cost had been revised downward from an earlier estimate of KSh 2.2 trillion to approximately KSh 2 trillion. He attributed the reduction to efficiencies gained from constructing his company’s existing refinery in Nigeria, noting that the Kenyan facility would be built faster, thereby cutting financing costs considerably. The project will be funded through a combination of equity and debt. Dangote’s company intends to contribute 30% of the total financing from its own equity and raise the remaining 70% through external debt.
What will be impact? Once operational, the refinery is projected to generate around 60,000 jobs. This span construction, engineering, logistics, manufacturing, and energy-related industries, making it one of the most significant private-sector investments in Kenya’s history. Dangote said preparations for the project are already at an advanced stage, suggesting the October timeline is well within reach.
