Dangote Expands Refining Capacity with New Kenya Project

Dangote Industries’ proposed KSh2.2 trillion East African oil refinery has taken another major step toward implementation after the Kenyan government established a high-level committee to coordinate the delivery of what is expected to become one of Africa’s largest energy infrastructure projects.

Kenyan President William Ruto announced that Deputy President Kithure Kindiki will chair the government committee responsible for working with Dangote Industries, private investors, and other stakeholders to facilitate the refinery’s development in Lamu.

The announcement, made during the signing of Kenya’s Sovereign Wealth Fund Bill, also confirmed that preparations for the project are at an advanced stage and that the government has already scheduled a groundbreaking ceremony, although the official date has not yet been disclosed.

The latest development underscores growing momentum behind Dangote Industries’ planned expansion into East Africa through a refinery that is expected to strengthen regional fuel security while supporting economic growth across multiple countries.

Lamu Confirmed as the Preferred Location

The project follows Dangote Industries’ decision to establish the refinery at Lamu Port, ending months of speculation over whether the multi-trillion-shilling investment would be located in Kenya or neighbouring Tanzania.

The refinery is expected to become a strategic energy hub serving both the Kenyan market and the wider East African region.

According to Dangote Industries, construction is expected to take between 30 months and three years, after which the facility will begin refining crude oil for domestic consumption and regional export.

Diversified Financing Strategy

Dangote Industries has disclosed that the refinery will be financed through a combination of internally generated funds, corporate bond issuances, and proceeds from a planned Initial Public Offering (IPO), reducing dependence on external borrowing while ensuring sustainable project financing.

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The Kenyan government has also demonstrated its commitment to the investment by allocating KSh21.5 billion in seed capital under the 2026/27 national budget, with additional funding expected through a Public-Private Partnership (PPP) model.

Expanding Dangote’s Refining Capacity

The proposed East African refinery forms part of Dangote Industries’ long-term strategy to expand its refining footprint across Africa.

Once operational, the facility is expected to process more than 700,000 barrels of crude oil per day, increasing the company’s combined refining capacity to approximately 2.1 million barrels per day.

The refinery will supply petroleum products to Kenya, Uganda, Tanzania, South Sudan, and other regional markets, reducing East Africa’s dependence on imported refined fuel while improving supply reliability and shielding economies from global energy market disruptions.

Boosting Regional Industrial Growth

Beyond strengthening energy security, the refinery is expected to generate substantial economic benefits through job creation, industrial development, technology transfer, and increased investment in Kenya’s manufacturing and logistics sectors.

The project also aligns with Dangote Industries’ broader vision of building world-class industrial infrastructure that supports Africa’s economic transformation by expanding local production capacity and reducing reliance on imported petroleum products.

With implementation structures now in place and the groundbreaking ceremony approaching, the refinery project is moving closer to construction, marking another significant milestone in Dangote Industries’ expansion across the African energy landscape.