Aliko Dangote will begin construction of a proposed oil refinery in Lamu, Kenya, in October 2026 [1].
The project aims to shift the energy landscape of East Africa by reducing the region's dependence on imported fuels. By establishing a domestic refining hub, the facility is intended to serve both Kenya and its neighboring countries.
Dangote, the founder of the Dangote Group, plans to build a refinery with a capacity of 700,000 barrels per day [4]. The site for the massive infrastructure project is located on Lamu Island within Lamu County [1].
Financial estimates for the project vary across reports. Dangote said the project is expected to cost about Sh2 trillion [2]. Other estimates place the total investment at $17 billion [3].
The scale of the facility represents one of the largest industrial undertakings in the region. The refinery is designed to process crude oil into various fuel products, providing a more stable supply chain for the local market, a move that could mitigate price volatility caused by global shipping disruptions.
Local authorities in Lamu County are preparing for the influx of labor and materials required for the October start date [1]. The project follows Dangote's broader strategy of industrializing the African continent through large-scale manufacturing, and resource processing.
“The project is expected to cost about Sh2 trillion.”
The establishment of a 700,000-bpd refinery in Kenya would significantly alter the geopolitical and economic dynamics of East African energy. By shifting from a fuel-importing model to a refining hub, Kenya could lower its foreign exchange expenditure and increase its influence over regional energy security, provided the project overcomes the high capital costs and logistical challenges of the Lamu coastline.
