The Dangote Group is planning to establish a multibillion-dollar oil refinery on Kenya’s Lamu Island in a move that could reshape East Africa’s energy landscape, strengthen regional fuel security and accelerate economic growth across several countries.
The proposed refinery, designed to process up to 700,000 barrels of crude oil per day, would mirror the scale of the company’s flagship refinery in Lagos, Nigeria. If completed, it would become one of Africa’s largest refining facilities and position Kenya as a strategic supplier of refined petroleum products, to East and Central Africa.
The project, which is estimated at about US$17 billion (KSh2.2 trillion), comes as governments across the region seek to reduce dependence on imported refined fuel, stabilize energy supplies and create new industrial opportunities.
This is a government backed transformational investment. The Kenyan government has thrown its weight behind the project, describing it as a critical investment capable of transforming the country’s industrial and logistics sectors.
President William Ruto has consistently promoted the refinery as a cornerstone of Kenya’s ambition to become East Africa’s leading energy hub. To fast-track implementation and reduce bureaucratic delays, Deputy President Kithure Kindiki has been assigned to coordinate the massive investment across government agencies.
Authorities say the project is currently in its preliminary stages, with engineering studies, site surveys and regulatory processes underway. Environmental impact assessments and public participation exercises are expected before construction receives final approval, reflecting growing government efforts to balance industrial expansion with environmental protection and community interests.
But why is Lamu the chosen location? Lamu emerged ahead of competing proposals, including Tanzania’s Tanga Port, largely because of its strategic location and deep-water maritime infrastructure. Situated along Kenya’s northern coastline in the Indian Ocean, Lamu offers direct access for large crude oil tankers while serving as a natural gateway to landlocked markets such as Uganda, South Sudan, Rwanda, Burundi, eastern Democratic Republic of Congo and parts of Ethiopia.
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