Lamu Oil Refinery
  Location within Kenya | |
| Location | |
|---|---|
| Refinery details | |
| Opened | 2032 (Expected) |
| Capacity | 700,000 barrels per day (110,000 m3/d) |
The Lamu Oil Refinery is a planned crude oil refinery on Lamu Island, in Lamu County, on the shores of the Kenyan Indian Ocean coast. The refinery is planned to be fed by the oil-producing countries of East Africa and suppliers from Central Africa, such as Angola and from West Africa, such as Nigeria. The refined petroleum products of this refinery are primarily intended for use in eight neighboring countries of Eastern Africa, with the rest marketed internationally.
Location
The planned refinery is under development on the eastern coast of Lamu Island, adjacent to the Port of Lamu, in Lamu County in Kenya. This is approximately 470 kilometres (290 mi) as the crow flies, southeast of Nairobi, Kenya's capital city.[1] Lamu is located approximately 700 kilometres (430 mi), by road southeast Nairobi.[2]
Overview
The refinery is the brainchild of Aliko Dangote, Africa's weatlthiest individual and Chairman, President and proprietor of Dangote Group based in Lagos, Nigeria. Initially he wanted to build the refinery in the port city of Tanga, Tanzania. Then attention shifted to Mombasa, Kenya. Finally, the port city of Lamu was selected due to the existence of a deep port, Kenya's advanced economy and the existence of the Lamu Port and Lamu–Southern Sudan–Ethiopia Transport Corridor, a project already in development.[1][3]
Specifications
The project, which is in the planning phase as of July 2026, is planning a refinery with capacity of 700,000 barrels per day (110,000 m3/d), with construction costs initially estimated at US$17 billion. Crude oil is planned to be sourced from Uganda, Kenya, South Sudan and the Democratic Republic of the Congo. If need be, other African countries will be approached to provide the crude oil. The planned consumer countries of the refined products include Burundi, Ethiopia, Congo-Kinshasa, Kenya, Rwanda, South Sudan, Tanzania and Uganda.[1][3]
Ownership
The anchor owner is the Dangote Group. It is expected that the governments of several East African countries including Kenya will invest in the project. Mohammed Dewji, the wealthiest individual in Tanzania, has pledged to invest $100 million in the project.[4] In August 2026, it was reported that 30 percent equity in the refinery will be reserved for Eastern African countries. Kenya is committed to 10 percent shareholding. Rwanda and Ethiopia have indicated interest in equity investment. The table below illustrates tentative ownership at that time.[5]
| Rank | Name of Owner | Percentage Ownership |
|---|---|---|
| 1 | Dangote Group | 70.0 [5] |
| 2 | Government of Kenya | 10.0 [5] |
| 3 | Government of Ethiopia | 10.0 [5] |
| 4 | Government of Rwanda | 10.0 [5] |
| Total | 100.00 | |
Developments
In July 2026, the government of Kenya appointed a committee headed by Vice President Kithure Kindiki to work with the Dangote Group to get the development project started. The government set aside $165 million as seed capital into the refinery.[4] The construction and operation of the refinery is projected to create an estimated 60,000 direct and indirect jobs.[6]
In August 2026, Aliko Dangote explained that the cost of this refinery had been revised down from US$17 billion to approximately US$16 billion. Breaking ground on construction is tentatively planned in October 2026 with a construction timeline of four to five years.[7] Financing is planned to comprise 30 percent equity and 70 percent debt.[8]
See also
References
- 1 2 3 Andrew Wasike (10 July 2026). "Kenyan president says East Africa's biggest refinery to move ahead in Lamu". Anadolu News Agency. Ankara, Turkey. Retrieved 24 July 2026.
- ↑ "Road Distance Between Nairobi, Kenya and Lamu Port, Kenya" (Map). Google Maps. Retrieved 26 July 2026.
- 1 2 Alex Kimani (22 July 2026). "Africa's Richest Man Proposes To Build 700,000 Bpd Oil Refinery In Kenya". Oilprice.com. London, England, United Kingdom. Retrieved 26 July 2026.
- 1 2 Andrino Akuda; Bonface Orucho (24 July 2026). "Dangote's proposed Kenya refinery tests a new blueprint for African industrialisation" (via Bird News Agency). The Independent (Uganda). Kampala, Uganda. Retrieved 26 July 2026.
- 1 2 3 4 5 Adekunle Agbetiloye (21 August 2026). "Dangote offers East Africa 30% stake in $16 billion refinery that could reshape the region's fuel market". Business Insider Africa. Lagos, Nigeria. Retrieved 22 August 2026.
- ↑ Phidel Kizito (10 July 2026). "Lamu's oil refinery to create 60,000 jobs, President Ruto promises". 98.4 Capital FM. Nairobi, Kenya. Retrieved 26 July 2026.
- ↑ Chinedu Okafor (10 August 2026). "Dangote's $16 billion Kenya refinery could break ground sooner than expected". Business Insider Africa. Lagos, Nigeria. Retrieved 10 August 2026.
- ↑ Timothy Cerullo (8 August 2026). "Dangote-Backed Lamu Oil Refinery Set to Begin Construction in October 2026". Kenyans.co.ke. Nairobi, Kenya. Retrieved 10 August 2026.