Inside the Ksh.2 trillion Dangote Oil refinery in Lamu

The planned refinery on Kenya's coast is expected to take up to three years to complete. It will supply refined petroleum products to Kenya and neighbouring countries, helping reduce East Africa's reliance on imported fuels.

Dangote Group Chairman and Nigerian billionaire Aliko Dangote has said the refinery is designed to refine 700,000 barrels per day.

It is projected to produce more than 100 million litres of petrol, diesel and aviation fuel daily.

The project is expected to become Dangote Group's biggest refining investment outside Nigeria and comes as the company pursues further expansion of its energy business across Africa.

“What this investment (Lamu refinery) will do for the Kenyans, it's not only the refinery; the refinery is like the gate. Once you open and have the refinery, you'll be shocked at how many people will know to come and invest in Kenya,” Dangote said during an interview in Lagos.

The Port of Lamu has received 2,930 metric tonnes of construction equipment loaded on the MV Da Yang.

The Kenya Ports Authority (KPA) said that the vessel docked at the port on September 26 ahead of the groundbreaking ceremony.

The refinery aims to supply refined petroleum products to Kenya and neighbouring East African countries, including Ethiopia, South Sudan, Uganda, Tanzania, Rwanda, Burundi, and the DRC.

Initially, Tanzania was one of the locations considered for the refinery. Still, Dangote, after a meeting with President Samia Suluhu Hassan in June, explained "the commercial and technical considerations behind the Group's decision to locate its planned East African refinery in Lamu". 

President William Ruto, while touring the Dangote Refinery in Lekki, Lagos State, Nigeria on September 25, said the project is expected to improve fuel reliability and security while supporting industrialisation and creating about 60,000 jobs.

He said the refinery has also been connected to crude oil supplies through 120 kilometres of sea cables used to transport crude from ships to the facility.

“This huge achievement is a testament to what African governments, investors and financial institutions can do together,” Ruto said.

Dangote has also said the Lamu project would significantly generate more power than the Lagos facility.

“What we are going to have, the power plant in Lamu will be actually double (the one in Nigeria) because we are going to produce about 1000 megawatts in Lamu out of petcoke and we'll have 500 megawatts to sell to the government of Kenya,” he said.

The project, however, faces local opposition and land-rights lawsuits from residents claiming displacement and property destruction tied to preliminary site developments.

Over 130 residents of Chandavai in Lamu County have moved to court seeking to stop what they describe as the unlawful takeover and destruction of land their families have occupied and cultivated for generations.

They contend that the development threatens to displace them without a resettlement plan or compensation.

Biggest expansion outside Nigeria

The project is expected to become Dangote Group's biggest refining investment outside Nigeria and comes as the company pursues further expansion of its energy business across Africa.

This came as he also revealed plans to list shares in the group's Nigerian refinery through an Initial Public Offering (IPO), targeting $1.6 billion, which is still ongoing and set to close on October 13, 2026.

This could become Africa's largest public offering.

Private Placement (July 2026): Raised $2.5 billion for a 6% stake ahead of the current public offering.

Dangote also said the group plans to double the capacity of its Nigerian refinery from 650,000 barrels per day to 1.4 million barrels per day.