Dangote Offers East Africa 30% Stake in $16 billion Refinery that Could Reshape the Region’s Fuel Market

Aliko Dangote is offering East African countries a 30% equity stake in a planned refinery in Kenya, as Africa’s richest man seeks regional partners for a project that could reshape the continent’s fuel supply landscape.

Aliko Dangote is offering East African countries a 30% equity stake in a planned refinery in Kenya, as Africa’s richest man seeks regional partners for a project that could reshape the continent’s fuel supply landscape.

Kenya could take a 10% stake worth about $500 million, according to David Ndii, economic adviser to Kenyan President William Ruto. Ethiopia and Rwanda have also expressed interest in participating in the project, according to Bloomberg.

“The total for the region is about $1.5 billion,” Ndii said at a capital markets forum in Nairobi.

The refinery is planned for Lamu on Kenya’s northern coast and is expected to have a processing capacity of 700,000 barrels per day, matching the scale of Dangote’s flagship refinery in Nigeria.

The refinery itself could cost up to $16 billion, while the broader petrochemical complex and additional port infrastructure could bring the total investment to around $20 billion, Ndii said.

Construction is expected to take between three and five years, with groundbreaking planned for September.

Reducing Africa’s fuel imports

The project comes as African countries continue to rely heavily on imported refined petroleum products despite the continent’s oil and gas resources.

Dangote’s 650,000-barrel-per-day refinery in Lagos has already become a major source of refined fuel for Nigeria and international markets. A second large-scale refinery in East Africa would expand the group’s influence across Africa’s downstream petroleum industry.

The proposed Kenyan facility could also reduce the region’s dependence on imported refined fuel by providing a closer source of gasoline, diesel and other petroleum products for East African markets.

For Dangote, the project represents an opportunity to build on the Nigerian refinery’s model while creating a major energy hub in East Africa. For the region, the investment could strengthen energy security, support trade and contribute to the development of local industrial infrastructure.