Africa’s richest man, Aliko Dangote, has begun work on a planned $16 billion (about R267 billion) oil refinery in Kenya, describing the project as a new chapter in Africa’s industrial development.
The refinery, planned for the port of Lamu, is expected to process up to 700,000 barrels of crude oil per day. If completed as planned, it would have greater capacity than any refinery in Europe.
Construction is expected to take between 30 and 40 months.
Kenyan President William Ruto joined Dangote, Ethiopian Prime Minister Abiy Ahmed and Ugandan President Yoweri Museveni at the ground-breaking ceremony.
“This is Africa coming together to build Africa,” Dangote said, describing the refinery as part of a wider effort to increase the continent’s ability to process its own natural resources.
Project Faces legal And Environmental Concerns
The development has already faced opposition from a local community over land rights. A court recently allowed the ground-breaking ceremony to proceed, although the legal case remains ongoing.
Environmental groups, including Greenpeace, have also raised concerns about the refinery’s potential impact on Lamu, a major tourist destination and home to a historic Swahili settlement recognised as a UNESCO World Heritage site.
Ruto said concerns over land and environmental issues would be dealt with lawfully and fairly.
Regional Competition
The project is also emerging amid growing competition for refining and energy investment in East Africa.
Uganda and Tanzania announced plans in August for a rival $20 billion (about R334 billion) refinery and energy hub at Tanzania’s port of Tanga. Details of that project remain limited.
Uganda is preparing to begin oil production and is nearing completion of a pipeline linking its oil fields to the Tanzanian coast.
This means Dangote’s Kenyan refinery will initially depend largely on imported crude. Dangote said supplies could come from the Middle East, the United States and other regions before more crude becomes available from African producers such as Kenya and Mozambique.
The refinery is also expected to include a 1,000-megawatt power plant, with half of its electricity production intended for Kenya’s national grid.
Reducing Africa’s Dependence On Fuel Imports
Dangote said the project was aimed at helping Africa move away from exporting crude oil while importing refined petroleum products.
He argued that greater refining capacity on the continent could help retain jobs, investment and economic value within African countries.
Ruto cited figures showing that Africa produced about 6.8 million barrels of crude oil per day in 2024 while consuming around 4.5 million barrels of refined petroleum products.
The refinery is therefore being positioned as part of a broader push to increase Africa’s refining capacity and reduce its reliance on overseas processing.
Main Image: Reuters
