Nigerian billionaire Aliko Dangote has offered Kenya, Ethiopia and Rwanda a combined stake of up to 30% in a planned oil refinery in Lamu, as he seeks regional backing for a project that could reshape fuel supply across East Africa.
Kenya is considering a 10% stake worth about $500 million, while Ethiopia and Rwanda have also expressed interest in participating, according to David Ndii, an economic adviser to President William Ruto. The three countries could together invest about $1.5 billion if they take the full 30% share.
The refinery is planned to process 700,000 barrels of crude oil per day. The cost of the refinery itself is currently estimated at about $16 billion, although the wider development, including port and petrochemical infrastructure, could bring the total investment closer to $20 billion.
The project would be Dangote’s second major refining operation in Africa after his 650,000-barrel-per-day facility near Lagos. The Nigerian refinery, which cost about $20 billion, has expanded exports of refined petroleum products to regional and international markets.
For East Africa, the Lamu project is intended to reduce reliance on imported refined fuels. Its coastal location would give it access to crude shipments by sea, while regional transport links could allow refined products to reach landlocked markets including Uganda, Rwanda and the Democratic Republic of Congo.
Construction is expected to begin later in 2026, with the groundbreaking currently targeted for September or October. Dangote has said the refinery could be completed in less than four years once construction begins.
The proposed regional ownership structure would give East African governments a direct financial interest in the project while helping Dangote secure political and commercial support for one of the continent’s largest planned refining investments.
If completed as planned, the Lamu refinery could make Kenya a major petroleum-processing and distribution hub for East Africa, while reducing the region’s exposure to international refined-fuel supply chains.
