Dangote to Begin Construction of $16bn Lamu Oil Refinery in October

Construction of the proposed Lamu Oil Refinery in Kenya, backed by Nigerian billionaire Aliko Dangote, is expected to begin by October 2026.

Dangote said preparations for the project are already at an advanced stage, with groundbreaking scheduled to take place no later than October. He said construction is expected to be completed in less than four years.

The planned refinery will have a processing capacity of 700,000 barrels of crude oil per day, making it one of the largest proposed oil-processing facilities in Africa.

Dangote said the refinery will serve not only Kenya but also other countries across East Africa and beyond, potentially including Egypt.

The estimated cost of the project has also been reduced from approximately KSh2.2 trillion ($17 billion) to about KSh2 trillion ($16 billion).

According to Dangote, the lower cost is partly due to lessons learned from the construction of the Dangote Refinery in Nigeria. He explained that the Kenyan project is expected to be completed faster, reducing financing costs.

The project will reportedly be financed through a combination of equity and debt, with 30 per cent of the funding coming from equity and the remaining 70 per cent raised through debt.

Once completed, the refinery is expected to become one of Kenya’s largest private-sector investments and create thousands of jobs in construction, engineering, logistics, manufacturing, energy and related sectors.

Dangote said the broader goal is to help African countries achieve greater energy self-sufficiency by developing major refining capacity within the continent.

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