Aliko Dangote Offers East African Nations Equity in Lamu Refinery

Industrialist Aliko Dangote and the Dangote Group have proposed the construction of a massive oil refinery and petrochemical complex in Lamu, Kenya. The project, estimated to cost between $15 billion and $17 billion for the refinery alone and up to $20 billion including port infrastructure, is designed to process between 600,000 and 700,000 barrels of crude daily from Kenya, Uganda, and South Sudan.

To secure the project, Dangote has offered East African nations a combined 30% equity stake. David Ndii, an economic adviser to President William Ruto, stated that Kenya has been offered a 10% stake valued at approximately $500 million, while Ethiopia and Rwanda have expressed interest in participating. In exchange for this investment, Dangote is seeking land, regional financing, and protection against cheap refined imports from Russia and India.

While groundbreaking is targeted for September or October 2026, no final investment decision has been signed. The project aims to inject $4 billion annually into the Kenyan economy by linking regional crude production to a central hub. However, Uganda remains undecided as it continues to pursue its own refinery and a separate coastal hub agreement with Tanzania.