Dangote Group has announced plans to establish a major oil refinery in Kenya as part of its strategy to expand refining capacity across Africa.
The proposed refinery will be located on Lamu Island and is expected to process up to 700,000 barrels of crude oil per day, making it the largest refinery in East Africa once completed. The project is expected to significantly reduce the region’s dependence on imported refined petroleum products.
According to company officials, preliminary activities have already begun, including site selection, soil testing, engineering and design work.
The refinery was initially considered for Tanzania before the project was relocated to Kenya following consultations with regional stakeholders.
Edwin Devakumar, Vice President of Oil and Gas at Dangote Industries, said the company intends to finance the project through internally generated funds, bond issuances and proceeds from a planned initial public offering (IPO), which could be launched later this year.
Although the company did not disclose the exact cost of the investment, officials indicated that it would be comparable to the Lagos-based Dangote Refinery, whose total development cost exceeded $20 billion.
The Kenya refinery is expected to become Dangote Group’s largest investment outside Nigeria and forms part of the company’s broader expansion strategy aimed at strengthening Africa’s refining capacity.
The group is also working to increase the processing capacity of its Lagos refinery from 650,000 barrels per day to 1.4 million barrels per day by 2028.
Industry observers believe the new refinery could transform East Africa’s energy landscape by reducing fuel import dependence, strengthening regional energy security and positioning Kenya as a major petroleum distribution hub for neighbouring countries.
The announcement follows recent moves by Dangote Petroleum Refinery to expand access to its refined products by allowing all licensed fuel marketers in Nigeria to purchase petrol directly from the facility.
