Dangote Group expands East African footprint with USD 16B Lamu refinery plant

KENYA – The Dangote Group, a Nigerian multinational industrial conglomerate, is expanding its East African footprint with a USD 16 billion oil refinery in Lamu, Kenya, marking its largest investment outside Nigeria. 

Once operational by 2030, the refinery is expected to process 700,000 barrels of crude oil per day, matching the capacity of Dangote’s Lekki refinery in Nigeria. 

This would make it East Africa’s largest refinery and one of the continent’s most significant industrial assets.

For Dangote Group, the Lamu project offers a route into a region with limited refining capacity and high fuel import dependence. 

By processing crude locally, the company could supply refined products to Kenya and neighbouring markets, potentially reducing reliance on imported fuel and strengthening its position across East Africa.

The investment also includes a 1,000-megawatt power plant, which will support refinery operations and provide electricity for other industries expected to develop around the site. 

This aligns with Dangote’s broader strategy of building integrated industrial ecosystems, where energy, logistics, and manufacturing support one another.

Dangote has offered regional governments a combined 30% stake in the refinery, a move that could secure political support, share project risk, and deepen commercial ties across East Africa. 

The ground-breaking was attended by leaders from Uganda, Ethiopia, Togo, and Benin, underscoring the project’s regional significance.

The refinery is expected to create 60,000 jobs at peak construction, while also generating wider economic activity through suppliers, transport operators, and ancillary businesses. 

For Kenya, it represents the country’s largest infrastructure project since independence, surpassing the USD 5.1 billion Standard Gauge Railway.

However, the project also faces local opposition over land compensation and environmental concerns, with 133 Lamu residents seeking a court order to stop construction. 

These disputes could affect timelines and increase reputational and regulatory risk.

This move comes shortly after Dangote Refinery has announced plans to construct Africa’s largest detergent raw material plant, a major step toward industrial self-sufficiency.

This facility is set to produce 400,000 tonnes of Linear Alkyl Benzene (LAB) annually within the refinery complex in Nigeria.

The plant targets LAB, a key surfactant feedstock for powdered and liquid detergents, meeting the continent’s full demand.

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