Aliko Dangote has selected Lamu, Kenya, as the site for Dangote Industries Limited’s proposed 700,000 barrels-per-day (bpd) refinery in East Africa, ending months of speculation over the project’s location.
A senior executive of the company confirmed on Tuesday that the refinery, modelled after the Dangote Petroleum Refinery in Lagos, will be built in the coastal town of Lamu and is expected to be completed within 30 months.
The company’s Vice President of Oil and Gas, Edwin Devakumar, disclosed the development in an interview with AFP, saying the investment will strengthen Dangote Industries’ presence across Africa while enhancing regional energy security.
The announcement follows months of speculation, with Tanzania previously considered a leading contender for the project.
During a recent visit to Tanzania, Dangote held discussions with President Samia Suluhu Hassan on investment opportunities in the country’s energy sector. According to a statement issued after the meeting, he explained the commercial and technical factors that influenced the company’s decision to site the refinery in Lamu.
The statement also noted that Dangote invited Tanzania to participate in the Lamu refinery project despite its location in Kenya.
Before settling on Lamu, the company had reportedly considered Mombasa before opting for Kenya’s northern coastal region.
The proposed refinery marks another major expansion for the Dangote Group following the successful launch of its 650,000bpd Dangote Petroleum Refinery in Nigeria, which began operations in 2024.
The refinery has transformed Nigeria’s downstream petroleum sector by significantly reducing the country’s dependence on imported refined petroleum products while boosting local refining capacity.
Beyond meeting domestic demand, the refinery has expanded its export footprint, supplying aviation fuel to markets in the United States, Europe and Brazil.
It also recently exported 12 cargoes totalling 456,000 tonnes of refined petroleum products to several African countries, including Ivory Coast, Cameroon, Tanzania, Ghana and Togo, further strengthening its position in regional energy trade.
The Kenyan refinery aligns with Dangote Industries’ broader strategy of expanding its investments across Africa in energy, manufacturing, cement, fertiliser and infrastructure.
Once completed, the facility is expected to improve fuel supply across East Africa, reduce reliance on imported refined products and support industrialisation in Kenya and neighbouring countries.
Meanwhile, the company is also pursuing plans to expand the capacity of its Nigerian refinery from 650,000bpd to 1.4 million barrels per day by 2028, a move that could make it the world’s largest refinery.
Dangote Refinery is also expected to be listed on the Nigerian Exchange next year, providing investors with an opportunity to participate in one of Africa’s largest industrial ventures.
Industry analysts believe the Lamu refinery project will strengthen regional energy integration, create jobs, boost infrastructure development and reinforce Dangote Group’s position as one of Africa’s leading industrial conglomerates.
