Aliko Dangote has confirmed September 30, 2026, as the groundbreaking date for his planned $16 billion oil refinery in Lamu, Kenya, setting the stage for one of East Africa’s largest energy investments.
The refinery will strengthen regional energy security by increasing the supply of locally refined petroleum products and reducing dependence on imported fuel. With a planned processing capacity of 700,000 barrels of crude oil per day, the facility will become the largest refinery in East Africa and the second-largest on the African continent after Dangote’s refinery in Lagos, Nigeria.
The project is also expected to serve markets beyond Kenya, supplying refined petroleum products to countries including Uganda, Tanzania, South Sudan and the Democratic Republic of Congo. This could give East Africa a major new source of refined fuel while supporting trade and industrial activity across the region.
Dangote confirmed the September groundbreaking while speaking to investors and analysts during a visit to Botswana. “We are launching it on September 30,” he said, according to Reuters. The date brings forward an earlier timeline in which he had indicated that construction would begin by October 2026.
A major investment for Kenya and the region
The refinery is expected to cost approximately $16 billion, down from an earlier estimate of $17 billion. Dangote has attributed the lower cost to efficiencies gained from the construction of his Lagos refinery, faster construction timelines and lower financing costs.
The project will be financed through a combination of debt and shareholder funds. About 70%, estimated at KSh1.45 trillion ($11.2 billion), will come through debt financing, while the remaining 30%, about KSh621 billion ($4.8 billion), will be funded by shareholders, including Dangote.
The investment will also give East African governments an opportunity to take part directly in the project. Kenya, Ethiopia and Rwanda have been offered a combined 30% equity stake valued at about $1.5 billion.
Kenya is expected to hold 10%, worth approximately $500 million. David Ndii, economic adviser to President William Ruto, disclosed the proposed ownership structure at the Mwango Capital Markets Forum in Nairobi, putting the total regional investment at about KSh194.2 billion ($1.5 billion).
“The total for the region is about KSh194.2 billion ($1.5 billion),” Ndii said.
Kenya’s selection over Tanzania was confirmed in July after months of speculation that the refinery could be built in Tanga. The decision has been presented by President Ruto’s economic team as an important step towards strengthening regional energy security.
Lamu project could drive jobs and industrial growth
The refinery is set to be supported by a wider industrial development in Lamu. Kenya is planning a 1,000-megawatt power plant and a special economic zone around the project, creating the potential for new industries and businesses to develop alongside the refinery.
President Ruto has said the wider development could create about 60,000 jobs and significantly increase economic activity in Lamu County.
The refinery could also benefit from crude supplies from across East Africa. Ndii estimates the region could provide more than 600,000 barrels of crude oil per day, with South Sudan contributing about 350,000 barrels, Uganda 250,000 barrels and Kenya 120,000 barrels.
If delivered as planned, the Lamu refinery would therefore be more than an energy project for Kenya. Its scale could create new investment opportunities, support regional trade, provide jobs and help East African countries build greater control over their fuel supply.
