Aliko Dangote and Kenyan President William Ruto broke ground on Wednesday at Mokowe in Lamu County for the Dangote East Africa Petroleum Refinery and Petrochemicals Special Economic Zone, a $16 billion facility designed to process 700,000 barrels of crude oil a day and targeted for completion by 2030. Uganda’s President Yoweri Museveni and other regional leaders attended the ceremony.
At full capacity, the Dangote Lamu refinery plant would match his flagship 700,000-barrel-a-day refinery at Lekki in Nigeria, making it the largest refinery in East Africa and the second largest on the continent. The site was originally considered for Tanga, Tanzania, before Dangote selected Lamu, citing deeper waters and ground conditions after discussions with Tanzanian President Samia Suluhu Hassan in June.
The integrated complex is planned to include petrochemical units and a power plant of about 1,000 megawatts, of which Dangote has said roughly 500 megawatts could be supplied to Kenya’s grid. Financing follows a 70/30 debt-to-equity structure, with the Africa Finance Corporation and other development finance institutions involved on the debt side.
Dangote has offered East African governments a combined 30% equity stake in the project, worth an estimated $1.5 billion. Kenya has indicated interest in a 10% share valued at roughly $500 million, and Rwanda has sought a similar stake, while Ethiopia has also expressed interest, regional officials said. Dangote said participating governments would be allowed to pay for their shares over four years and told the ceremony he wanted the refinery listed on Kenya’s stock exchange, rather than Nigeria’s, once it matures for public ownership. The plant is expected to draw crude from South Sudan, Uganda’s Lake Albert fields via the East African Crude Oil Pipeline, and Kenya’s Turkana oilfields, which remain undeveloped.
Some analysts have, however, doubted whether crude supply and regional energy infrastructure can support the refinery at scale. The facility is intended to supply Kenya, Uganda, South Sudan, Tanzania, Rwanda, Burundi, Ethiopia and the Democratic Republic of Congo, countries that currently import nearly all the refined fuel they consume. Kenya’s government estimates the project could create around 60,000 jobs.
The groundbreaking proceeded despite an unresolved land case before the Malindi Environment and Land Court. A hundred and thirty-three residents of Chandavai in Lamu County, led by petitioner Salim Tima Swale, allege they were excluded from compensation when government and LAPSSET agents cleared part of the disputed parcel in August 2024. Justice Jane Onyango ordered on September 25 that both sides maintain the status quo on the specific land parcel until an October 14 hearing, a ruling that bars further clearing or construction there but does not block Wednesday’s ceremony or work elsewhere on the site.
Dangote said Kenyan authorities had already compensated affected residents and suggested opposition to the project was linked to traders whose businesses could be affected by local refining capacity. Environmental groups have separately raised concerns about the refinery’s proximity to Lamu Old Town, a UNESCO World Heritage Site, and the area’s marine ecosystems.
With construction now underway, the October 14 court hearing stands as the next milestone that could determine how the land dispute affects the project’s pace.
