Africa’s richest man, Aliko Dangote, has announced that construction of the proposed Lamu oil refinery in Kenya is expected to begin by October 2026, with the project’s estimated cost revised downward.
Dangote said preparations for the refinery are already at an advanced stage, with a groundbreaking ceremony expected to take place no later than October.
The proposed facility is expected to have a processing capacity of 700,000 barrels of crude oil per day, potentially making it one of Africa’s largest planned oil refineries.
According to Dangote, the refinery will serve Kenya as well as other markets across East Africa and could eventually supply petroleum products to countries beyond the region.
He said the estimated cost has been reduced from about $17 billion to approximately $16 billion, partly because of lessons learned from the construction of the Dangote Refinery in Nigeria.
Dangote explained that the Kenyan project is expected to be completed faster, which would help reduce financing costs and improve the overall economics of the investment.
The project will reportedly be financed through a combination of equity and debt, with Dangote’s company expected to provide 30 percent through equity and raise the remaining 70 percent through debt financing.
The refinery is expected to become one of Kenya’s largest private sector investments, while creating employment opportunities across construction, engineering, logistics, manufacturing, energy and related industries.
Dangote said the broader objective is to support energy self sufficiency across African countries by developing infrastructure capable of meeting growing domestic and regional energy demand.
