Nigeria’s billionaire industrialist Aliko Dangote has selected Lamu, Kenya, as the location for his planned East African oil refinery, ending months of speculation over whether the $17 billion (Sh2.2 trillion) project would be located in Kenya or Tanzania.
In an announcement on Tuesday, July 7, 2026, Edwin Devkumar, Vice President of Oil and Gas at Dangote Industries Limited, told Reuters that the proposed 700,000-barrel-per-day refinery will be built in Lamu.
“The site has been selected, soil tests are underway, and design and engineering work has commenced. Kenya was the choice from the beginning,” Devkumar said.
The announcement follows months after Dangote Group President Aliko Dangote disclosed plans to establish a major refinery in East Africa as part of the company’s expansion strategy.
The project will increase Dangote’s total refining capacity to 2.1 million barrels per day, with 1.4 million barrels processed at the company’s refinery in Nigeria and an additional 700,000 barrels at the planned Kenyan facility.
The Lamu refinery is expected to become one of the largest private-sector investments proposed in Kenya. It is projected to serve markets across East Africa, including Kenya, Uganda, Tanzania, South Sudan and other neighbouring countries.
Construction is expected to take approximately three years, after which the refinery will supply refined petroleum products to the region, potentially reducing East Africa’s reliance on imported fuel.
President William Ruto has previously said regional governments would participate in the project, with Kenya setting aside Sh21.5 billion in seed capital.
Construction is expected to begin later this year. The development comes as Kenya prepares for potential commercial oil production from the South Lokichar Basin in Turkana County by the end of 2026.
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