Nigerian billionaire Aliko Dangote is set to commence construction of a Sh2.2 trillion oil refinery in Lamu before the close of 2026. The project, with a planned capacity of 700,000 barrels per day, is poised to be Kenya’s largest private-sector investment, marking a new industrial era for Lamu and the surrounding Coast region.
Once operational, the refinery is projected to generate approximately 60,000 jobs across various sectors including construction, engineering, logistics, manufacturing, and energy. It will significantly enhance Kenya’s petroleum refining capacity and support the country’s ambition to become a regional energy and logistics hub.
Government Support and Strategic Importance
President William Ruto has identified the refinery as a key investment, assigning Deputy President Kithure Kindiki to lead a government committee tasked with coordinating efforts between private investors and the state to expedite the project. Preparations are reportedly advancing swiftly, with construction expected to begin before the end of this year.
The refinery’s location in Lamu is strategic due to its proximity to the Indian Ocean and the deep-water Lamu Port. The site also benefits from the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor, a major infrastructure initiative designed to link Kenya’s coast with regional markets through roads, railways, pipelines, and port facilities. This connectivity will facilitate efficient transport of crude oil and refined products between coastal and inland markets.
Regional Impact
The refinery could transform East Africa’s energy landscape by providing a local source of diesel, petrol, aviation fuel, and other petroleum products. Currently, many countries in the region—including Uganda, Tanzania, Rwanda, Burundi, South Sudan, parts of Ethiopia, and eastern Democratic Republic of Congo—depend heavily on imported refined fuels. The new refinery is expected to reduce supply chain costs and enhance energy security by lessening reliance on distant international suppliers.
This project follows Dangote’s flagship refinery in Lekki, Nigeria, which has a capacity of 650,000 barrels per day and started operations in January 2024.
