East African Nations Offered 30% Share of Dangote’s Kenya Mega-Refinery

Nigeria’s Dangote Group has proposed offering a 30% stake in a planned refinery in Kenya to East African nations, an economic adviser to Kenya’s President William Ruto announced. The refinery, to be built on Kenya’s Lamu Island, is expected to have a processing capacity of up to 700,000 barrels per day, costing approximately $17 billion.

This refinery would serve Kenya, Uganda, South Sudan, Rwanda, Burundi, and the Democratic Republic of the Congo. The proposed refinery’s capacity exceeds East Africa’s current refined fuel demand, which is around 450,000 barrels per day, by about 250,000 bpd, leaving potential for supplying markets outside the region. Dangote’s plan includes granting equity stakes to Kenya and other East African countries, with Kenya’s stake valued at $500 million.

The economic adviser, David Ndii, stated at an event in Nairobi that the region’s total stake could amount to $1.5 billion. Ndii expressed confidence in the deal, adding that if some countries do not take up the offer, the government would provide backstop support. The new refinery in Kenya would mirror the massive Dangote refinery in Nigeria, with a capacity of 650,000 barrels per day, capable of meeting the entire nation’s fuel demand.

The Dangote refinery has recently begun construction on a second crude processing unit, which will add another 700,000 barrels per day of capacity, positioning the complex to be one of the world's largest refining sites and granting Aliko Dangote a greater role in global fuel markets.