Aliko Dangote has announced that preparations for the construction of the proposed Lamu oil refinery in Kenya have reached an advanced stage, with the project expected to officially begin in October this year.
The Nigerian billionaire said the refinery is part of efforts to help African countries strengthen their energy independence by producing enough petroleum products to meet local and regional demand.
He explained that the facility will not only serve Kenya but will also supply other countries in East Africa and beyond.
Speaking during an interview with the BBC, Dangote said the ground-breaking ceremony for the project is expected to take place by October, after which construction will begin.
“By October this year, we will be groundbreaking. Once we break the ground, we will begin the construction,” he said.
The planned refinery is expected to process up to 700,000 barrels of crude oil per day, placing it among the largest oil-processing facilities planned in Africa. Once completed, the project is expected to increase Kenya’s petroleum storage and processing capacity while supporting the country’s long-term energy plans.
Dangote said the refinery will have a wider regional role, with petroleum products expected to reach several markets across Africa. He noted that countries in East Africa and other nations such as Egypt could benefit from the facility.
“The refinery will not only be for Kenya but East Africa as a whole, so it can serve a lot of countries, including Egypt,” he said.
The businessman also revealed that the estimated cost of the refinery has been reduced by about Ksh200 billion from earlier projections. The project was initially expected to cost approximately Ksh2.2 trillion but is now estimated at around Ksh2 trillion.
According to Dangote, the reduction in cost has been influenced by experience gained during the construction of his company’s refinery in Nigeria. He said the lessons learned from the Nigerian project will help ensure the Lamu refinery is completed faster and with lower financing expenses.
“We first thought it was going to cost $17 billion, but it will cost less than that, about $16 billion,” Dangote said.
He added that the project will be funded through a combination of company investment and borrowing. Dangote explained that the company plans to provide 30 per cent of the financing through equity, while the remaining 70 per cent will be raised through debt.
The Lamu refinery is expected to become one of the biggest private-sector investments in Kenya, creating employment opportunities during construction and after completion. Thousands of jobs are expected in areas such as engineering, logistics, manufacturing, construction and other industries linked to the energy sector.
Dangote said the main objective of the project is to help African countries reduce dependence on imported petroleum products and build stronger energy systems within the continent.
