Dangote Sets September 30 Launch for Lamu Refinery Project

Africa's richest man is bringing his refinery ambitions to the Kenyan coast. Aliko Dangote confirmed on Wednesday that September 30 is the target date for the formal launch of feasibility and groundbreaking activities for a planned oil refinery in Lamu County — a project that would be the second-largest of his continental energy bets after the Lagos mega-refinery that began partial operations in 2024.

The Lamu project, which Dangote's team describes as a "regional energy hub" rather than a single refinery, is envisioned to serve the East African market — processing crude oil from Uganda's recently commissioned Albertine basin fields and potentially from South Sudan and Ethiopia. Kenya's own offshore exploration blocks, which have shown promising but uncommercial hydrocarbon deposits, could also feed the facility if extraction economics improve.

Energy CS Opiyo Wandayi confirmed that the government has been in advanced discussions with the Dangote team for over a year and expressed "strong interest" in facilitating the project, which is estimated to require an initial investment of USD 8 billion. Lamu Port's expanding infrastructure — the second berth at LAPSSET's main port was commissioned in February — provides ready import and export capacity.

Local community groups in Lamu have issued a cautious welcome, noting the significant employment potential while raising concerns about environmental impact on the marine ecosystem around the Lamu Archipelago, a UNESCO World Heritage Site. "We want development. We do not want another Magadi situation where a company operates for a century and leaves communities with nothing," said Lamu East MP Ruweida Obo.

The wider EAC energy market is watching closely. Tanzania, which has been developing its own Tanga refinery concept, and Rwanda, which processes small volumes domestically, will be keenly aware that a Lamu refinery with regional ambitions could reshape fuel trade flows across the bloc.