Dangote Industries Limited has officially commenced preliminary work on its proposed $17 billion, 700,000-barrels-per-day refinery in Kenya, marking a significant milestone in Africa’s industrial and energy transformation.
The mega refinery, which will be located on Lamu Island along Kenya’s coast, is expected to become East Africa’s largest petroleum refinery when completed. Company officials confirmed that the project has advanced beyond the planning phase, with site selection finalized, soil investigations underway, and engineering and design activities already in progress.
The refinery is expected to take approximately three years to complete and will supply refined petroleum products to Kenya and neighboring East African countries, reducing the region’s heavy dependence on imported fuel.
According to reports by Reuters and Bloomberg, Dangote Group President Aliko Dangote is spearheading the project as part of his vision to expand Africa’s refining capacity beyond Nigeria.
A spokesperson for Dangote Industries disclosed that the planned facility will closely replicate the company’s flagship 650,000-barrels-per-day Dangote Petroleum Refinery in Lagos, but with an even larger processing capacity of 700,000 barrels per day.
The spokesperson explained that the Kenyan refinery is expected to cost up to $17 billion, making it one of the biggest industrial investments ever undertaken in East Africa.
Bloomberg reported that Dangote personally assured the Presidents of Kenya and Uganda of his commitment to establishing the refinery in East Africa. Kenyan President William Ruto had earlier announced in May that construction would commence this year.
Dangote Industries’ Vice President for Oil and Gas, Devakumar Edwin, confirmed that preparations have moved into an active development phase.
According to him, the company has completed the selection of the refinery site, while geotechnical investigations and engineering designs are progressing.
he site has been selected, soil tests are underway, and design and engineering work has commenced. Kenya was the choice from the beginning, Edwin said.
Bloomberg further reported that Lamu, a coastal town in southeastern Kenya, was chosen for both commercial and technical advantages, although the company did not disclose additional details regarding the selection process.
Earlier considerations reportedly included Tanzania, but Kenya eventually emerged as the preferred destination.
The Kenyan refinery represents Dangote Group’s largest refining investment outside Nigeria and forms part of the company’s long-term strategy to establish a pan-African refining network.
The expansion follows the successful commencement of commercial operations at the Dangote Refinery in Lagos, which has significantly transformed Nigeria’s downstream petroleum sector.
Edwin disclosed that financing for the Kenyan project would come through a combination of internally generated revenue, corporate bonds, and proceeds from the company’s planned Initial Public Offering (IPO).
Although he declined to reveal the exact investment cost, he noted that it would be comparable to the Lagos refinery, whose construction ultimately exceeded $20 billion before operations began in 2024.
While work begins in Kenya, Dangote Industries is simultaneously implementing another ambitious expansion project in Nigeria.
The company is increasing the processing capacity of its Lagos refinery from 700,000 barrels per day to 1.4 million barrels per day by 2028, a move expected to make the Nigerian facility one of the world’s largest refining complexes.
Once the Kenyan refinery becomes operational, Dangote’s combined refining capacity across Africa is projected to reach 2.1 million barrels per day, comprising:
- 1.4 million barrels per day in Nigeria
- 700,000 barrels per day in Kenya
The additional capacity is expected to strengthen fuel availability across West and East Africa while supporting regional economic integration.
Dangote Industries has also announced plans to invest an additional $46 billion between 2026 and 2028 across its refining, cement and fertilizer businesses.
The announcement was made during a recent visit by officials of the Republic of the Congo’s national oil company, Société Nationale des Pétroles du Congo, to the Dangote Petroleum Refinery in Lagos.
The investment is aimed at accelerating industrialization across Africa while expanding local manufacturing and energy infrastructure.
Africa remains one of the world’s largest crude oil-producing regions but still imports the majority of its refined petroleum products due to inadequate refining capacity.
Industry data indicate that although Africa accounts for roughly 7 percent of global crude oil production, refining capacity across the continent has declined significantly over the past two decades because of ageing facilities, underinvestment, operational inefficiencies and poor maintenance.
The successful operation of the Dangote Refinery in Nigeria has already begun changing that narrative.
Since reaching full production capacity, the Lagos refinery has substantially reduced Nigeria’s reliance on imported petrol, improved domestic fuel availability and encouraged several African governments to prioritize investments in local refining.
Beyond Kenya, several African nations are also pursuing new refining projects.
In Mozambique, Nigerian businessman Benedict Peters has expressed interest in developing a proposed 200,000-barrels-per-day refinery, while Uganda is advancing plans for a 60,000-barrels-per-day refinery to meet domestic demand and supply neighboring markets.
According to the African Petroleum Producers’ Organisation (APPO), Africa currently exports nearly 75 percent of its crude oil production while importing approximately 70 percent of the refined petroleum products consumed across the continent.
This imbalance has exposed many African economies to volatile global fuel prices, rising transportation costs and persistent foreign exchange pressures.
The proposed Kenyan refinery is expected to reshape East Africa’s petroleum market by strengthening regional fuel supply, reducing import dependence and supporting industrial growth.
For decades, Africa has exported crude oil only to import expensive refined products due to insufficient local refining infrastructure. Dangote’s latest investment seeks to reverse that trend by creating additional refining capacity within the continent.
If completed as planned, the refinery will become one of Africa’s most significant downstream energy projects, further advancing the African Union’s broader agenda of industrialization, regional integration and energy security.
The project also reinforces Dangote Industries’ position as a leading force in Africa’s industrial development while expanding Nigeria’s influence in the continent’s evolving energy sector.
