Dangote Offers East African Nations 30% Stake in Kenya Refinery

August 21, 2026 at 04:30 PM2 min

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Nigeria’s Dangote Group has offered a 30% stake in a planned $17 billion refinery in Kenya to East African nations, a senior economic adviser to Kenya’s President William Ruto said. Kenya’s 10% share could be worth $500 million, according to David Ndii, chair of the President’s Council of Economic Advisers. The Lamu Island refinery would process up to 700,000 barrels per day for Kenya, Uganda, South Sudan, Rwanda, Burundi, and the DRC.

Key Facts

Dangote Group plans to build a refinery on Kenya’s Lamu Island with a processing capacity of up to 700,000 barrels per day of crude, estimated to cost about $17 billion.
The refinery would process crude for Kenya, Uganda, South Sudan, Rwanda, Burundi, and the Democratic Republic of the Congo.
Kenya’s 10% stake in the refinery could be worth $500 million, while the total regional stake of 30% is valued at about $1.5 billion.
Lamu’s natural harbor has drafts reaching 18 meters, allowing it to accommodate fully laden Post-Panamax crude tankers carrying up to 2 million barrels.
The planned capacity exceeds East Africa’s current refined fuel demand of roughly 450,000 barrels per day by about 250,000 barrels per day.

Refinery Plans

Dangote Group, owned by Africa’s richest man Aliko Dangote, plans to build the refinery on Kenya’s Lamu Island. The facility would have a processing capacity of as much as 700,000 barrels per day of crude, with an estimated cost of about $17 billion. The refinery would serve Kenya, Uganda, South Sudan, Rwanda, Burundi, and the Democratic Republic of the Congo. Its planned capacity exceeds East Africa’s current refined fuel demand of roughly 450,000 barrels per day by about 250,000 barrels per day, leaving room to supply markets elsewhere on the continent.

Equity Offer

David Ndii, chair of the Kenyan President’s Council of Economic Advisers, announced the equity offer at an economic event in Nairobi. Kenya’s stake of 10% could be worth $500 million, while the total for the region is about $1.5 billion. Ndii said he does not see a challenge in raising the regional stake, adding that Dangote would backstop if some countries do not off-take.

Lamu Port Advantage

Lamu’s natural harbor, with drafts reaching 18 meters, can accommodate fully laden Post-Panamax crude tankers carrying up to 2 million barrels. These vessels are too large to call at Mombasa on Kenya’s southeastern coast on the Indian Ocean. The new refinery would replicate the massive Dangote refinery in Nigeria, which has a capacity of 650,000 barrels per day and meets 100% of Nigeria’s fuel demand.