Africa’s richest man, Aliko Dangote, has asked the Kenyan government to shield his proposed Ksh2.2 trillion ($16 billion) oil refinery in Lamu from competition posed by cheap imported fuel.
Dangote warned that refined petroleum products from countries such as Russia and India could make it difficult for the refinery to compete unless Kenya introduces measures to prevent what he described as dumping.
Dangote Plans $16 Billion Investment
Dangote intends to invest about $16 billion in the Lamu refinery project. He said lenders would provide roughly 70 per cent of the financing, while equity investors would contribute the remaining 30 per cent.
The debt portion would amount to about $11.2 billion.
Dangote said his group does not face challenges in raising the required financing for the project.
Government Support Key to Project
The Nigerian billionaire said Kenya must provide land, support regional financing arrangements and create a policy framework that guarantees a stable market for the refinery once production begins.
The proposed facility would process between 650,000 and 700,000 barrels of crude oil per day, making it one of the largest refineries on the African continent.
Construction Could Start in October
Dangote recently announced that construction could begin as early as October 2026, with preparations for the groundbreaking already at an advanced stage.
He expects the project to take less than four years to complete once construction starts.
The refinery’s estimated cost has also dropped from $17 billion to $16 billion, which Dangote attributed to lessons learned from constructing the Dangote Refinery in Lagos and the shorter projected construction period.
Lamu Emerging as Industrial Hub
The refinery proposal comes as the government pushes to transform Lamu County into a major industrial and logistics hub.
The government is also finalising plans for a Ksh12.9 billion palm oil processing plant at Witu Nyangoro Ranch.
Investment Promotion Principal Secretary Abubakar Hassan said the palm oil facility could create about 3,000 jobs and reduce Kenya’s dependence on imported palm oil.
Kenya Eyes Stake in Refinery
President William Ruto has previously indicated that Kenya plans to acquire a stake in the refinery through the National Infrastructure Fund as part of efforts to strengthen energy security and reduce reliance on imported refined fuel.
The refinery would source crude oil from Uganda, future production from Kenya’s Turkana oil fields, and imports delivered through the Port of Lamu, linking the project to the wider regional energy and transport network.
Environmental Questions Remain
The government has allocated Ksh21.5 billion in seed capital for the project in the 2026/27 financial year.
However, the proposal continues to attract scrutiny over environmental risks, government protection measures and the refinery’s ability to compete with imported fuel.
Environmental group Greenpeace Africa has already threatened legal action against the planned project, setting the stage for further debate as Kenya evaluates one of the largest energy investments in its history.
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