Kenyan Government to Buy Stake in $16 billion Dangote Lamu Oil Refinery – Ruto

The Kenyan government has announced plans to invest in the proposed KSh2.2 trillion ($16 billion) Lamu oil refinery through the National Infrastructure Fund.

The Kenyan government has announced plans to invest in the proposed KSh2.2 trillion ($16 billion) Lamu oil refinery through the National Infrastructure Fund.

Kenyan President William Ruto disclosed this at the groundbreaking ceremony in Lamu on Wednesday, September 30, 2026, opening a new financing model for one of East Africa’s largest planned industrial projects.

The government’s plan to buy a stake in the refinery will come alongside plans by Aliko Dangote to give Kenyans an opportunity to buy shares in the refinery through the Nairobi Securities Exchange, potentially broadening local ownership of the project.

Kenya to Invest in Dangote Refinery

President William Ruto said the government would deploy state assets, including land, alongside the infrastructure fund to invest in the refinery being developed by Nigerian billionaire Aliko Dangote.

• President Ruto said at the ceremony, “We are going to use the National Infrastructure Fund to invest in this refinery.”
• Ruto said the government could not finance every major road, railway, port, energy project and industrial undertaking through taxes and public debt.
• “Our task is no longer to simply ask how much government can spend. Our measure is how much investment every shilling of government or public capital can mobilise from the private sector, pension funds, insurance companies and other long-term assets.”
• Speaking on the refinery, Dangote said the project would bring together African capital, Kenyan talent and global technology, with the refinery expected to process about 700,000 barrels of crude oil a day.

The financing structure marks a departure from an approach in which large infrastructure projects are primarily funded through government borrowing or public expenditure.

Dangote said the facility would generate up to 1,000 megawatts of electricity, produce one million tonnes of polypropylene and include base-oil production.

Lamu Refinery Targets Energy Security

The facility is planned to process crude from Kenya’s Turkana oilfields as well as supplies from other parts of Africa and is expected to reduce the region’s dependence on imported petroleum products. The proposed refinery is also expected to become an anchor for a wider industrial complex around Lamu.

• The planned complex includes power generation, petrochemicals and manufacturing, as well as logistics and engineering services.
• The project is being positioned as a regional energy-security investment, with the refinery expected to supply markets beyond Kenya and reduce East Africa’s reliance on imported refined petroleum products.
• Kenya is reported to spend about KSh530 billion ($4.08 billion) importing petroleum products annually, according to Ruto, underscoring the size of the domestic market the refinery could serve.
• Ruto said the project would also give Lamu Port and the LAPSSET corridor an economic anchor by generating demand for transporters, contractors, engineers, manufacturers and other service providers.

The project is therefore being positioned around both domestic supply and a wider regional market, with the planned industrial complex expected to support additional economic activity around Lamu.

Dewji Eyes Dangote Refinery Stake

Nairametrics reported in July this year that Tanzanian billionaire Mohammed Dewji had expressed interest in investing $100 million in Aliko Dangote’s proposed oil refinery in Kenya, a project expected to become one of Africa’s largest refining facilities as the Nigerian industrialist expands his footprint across East Africa.

• Dewji had outlined his willingness to participate in the multi-billion-dollar refinery project despite his preference for Tanzania as the host country.
• Although Dewji said he would have preferred the refinery to be built in Tanzania, he indicated that he remains open to investing in the project if it ultimately proceeds in Kenya, stating, “I would lean more toward Tanzania than in Kenya.”
• He also revealed that discussions with Dangote are yet to begin but said he intends to initiate talks on participating in the refinery project.
• “Definitely reach out to him and we can chat about it,” Dewji said.

Dewji’s earlier comments point to potential interest from private investors in the project, while the latest announcement introduces the Kenyan government as a prospective investor through the National Infrastructure Fund.