Dangote and Ruto Break Ground on $16 Billion Oil Refinery in Lamu, Kenya

Nigerian billionaire Aliko Dangote and Kenyan President William Ruto broke ground on Wednesday on a $16 billion oil refinery in Lamu, Kenya, one of Africa’s largest new industrial projects and a major push to cut East Africa’s dependence on imported fuel, according to Reuters.

The Dangote East Africa Petroleum Refinery, planned for the LAPSSET corridor near Kenya’s second deep-water port, is designed to process 700,000 barrels of crude oil per day when completed — a scale comparable to Dangote’s flagship Nigerian plant, which turned Africa’s most populous nation from a major fuel importer into a growing exporter.

Dangote told reporters in Nairobi that he aims to complete the facility by 2030, setting a 40-month construction timeline. He said regional governments have been offered a combined 30% stake, and the project will include a 1,000-megawatt power plant plus petrol, diesel and jet-fuel production for Kenya and neighbouring markets.

The ceremony drew heads of state from across the region, including Uganda’s Yoweri Museveni, Ethiopia’s Abiy Ahmed, Benin’s Romuald Wadagni and Togo’s Jean-Luc Savi de Tové, Kenyan media reported.

Legal and environmental questions still shadow the project. A Kenyan court ordered the preservation of parts of the site pending an October 14 hearing in a land case brought by 133 local residents, while environmental campaigners warn of risks to the fragile marine ecosystems near Lamu Old Town, a UNESCO World Heritage site.

Sources:

1. Reuters: Dangote to begin construction of $16 billion East Africa refinery in Kenya → https://www.reuters.com/business/energy/dangote-begin-construction-16-billion-east-africa-refinery-kenya-2026-09-30/
2. Reuters: Dangote says Kenya court ruling won’t halt refinery launch → https://www.reuters.com/business/energy/dangote-says-kenya-court-ruling-wont-halt-refinery-launch-may-affect-site-2026-09-29/
3. AV1TV: Dangote Breaks Ground on $16bn Kenya Refinery → https://av1tv.com/dangote-breaks-ground-16bn-kenya-refinery/