Dangote Breaks Ground on Sh2.2 Trillion Lamu Oil Refinery

Lamu, Kenya | September 30, 2026

Kenya has formally broken ground on the planned Dangote East Africa Oil Refinery in Lamu, marking the start of a major energy and industrial project expected to expand petroleum processing capacity in the region.

The project, promoted by Nigerian billionaire Aliko Dangote, is estimated to cost about $16 billion, or approximately KSh2.2 trillion. The facility is designed to process up to 700,000 barrels of crude oil per day once completed.

The groundbreaking ceremony brought together senior Kenyan officials, regional leaders and other stakeholders as the country seeks to position Lamu as a major energy and industrial centre. The refinery is being developed in connection with the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor.

The facility is expected to produce petroleum products including petrol, diesel and aviation fuel for Kenya and neighbouring countries, potentially reducing the region's reliance on imported refined petroleum products.

The project is also expected to create thousands of employment opportunities and stimulate supporting industries such as petrochemicals, logistics, storage and manufacturing. Officials have estimated that the wider development could create more than 60,000 jobs.

Lamu Port will play a central role in the project by facilitating the movement of crude oil, equipment and finished petroleum products. About 2,930 metric tonnes of construction equipment have reportedly been delivered to the port ahead of the groundbreaking.

The refinery is expected to process crude from Kenya and other oil-producing countries in the region, with potential supplies from Uganda and South Sudan. However, questions remain over whether sufficient crude will be available to sustain a refinery of the planned capacity. Recent regional reporting has also highlighted uncertainty surrounding Uganda's future crude commitments to the project.

Dangote's investment builds on the company's experience operating its major refinery in Lagos, Nigeria. The Nigerian facility has a crude-processing capacity of 700,000 barrels per day and produces products including petrol, diesel, jet fuel and liquefied petroleum gas. Dangote has also outlined plans to expand the facility towards a capacity of 1.4 million barrels per day.

The Lamu project has faced legal challenges over land rights and other concerns raised by local residents. A Kenyan court recently ordered the preservation of the status quo in a dispute involving the project site. Dangote has said the ruling would not prevent the groundbreaking, although it could affect some activities on the disputed portions of the site.

Construction is expected to take several years, with current plans targeting the start of operations around 2030. If completed at its planned capacity, the refinery would rank among Africa's largest and would be the largest refinery project in East Africa.

For Kenya, the development represents a major expansion of petroleum and industrial infrastructure, while for the wider region it could provide an additional source of refined fuel and support greater trade in petroleum products. It also places Lamu at the centre of Kenya's broader plans to use the port and LAPSSET corridor as gateways for energy, transport and industrial development across East Africa.