Nigeria’s Dangote Industries Limited is pursuing plans to develop a 700,000-barrel-per-day (bpd) oil refinery in Lamu, Kenya, as part of its strategy to expand its refining footprint across the East African market.
The company’s Group Vice President for Oil and Gas, Devakumar Edwin, said the proposed refinery is expected to supply refined petroleum products to Kenya and neighbouring East African countries, helping to reduce the region’s dependence on imported fuels.
Mr. Edwin disclosed the planned investment during a visit by officials from the Republic of the Congo’s national oil company to the Dangote Petroleum Refinery in Lagos on July 1.
He noted that Dangote’s refining capacity in Nigeria is projected to increase to 1.4 million bpd, while the planned facility in Kenya would add another 700,000 bpd, bringing the company’s combined refining capacity to 2.1 million bpd.
President of Dangote Industries Limited, Aliko Dangote, had previously announced plans to establish a refinery in East Africa. Although the project was initially proposed for Tanzania’s Port of Tanga, the company has since shifted its focus to Kenya.
According to the company, Lamu and Mombasa are currently being evaluated as potential sites, with factors such as port access, existing infrastructure and market demand guiding the final location.
President of Kenya, William Ruto, said regional governments are expected to participate in financing the project, adding that Kenya has committed 21.5 billion Kenyan shillings in seed capital.
The refinery, estimated to cost about 2.5 trillion Kenyan shillings, is expected to supply petroleum products to Kenya, Tanzania, Uganda, South Sudan and other East African markets.
Once operational, the facility is expected to strengthen regional fuel security and reduce East Africa’s reliance on imported refined petroleum products.