Kenyan government to buy stake in $16 billion Dangote Lamu oil refinery – Ruto
The Kenyan government has announced plans to invest in the proposed KSh2.2 trillion ($16 billion) Lamu oil refinery through the National Infrastructure Fund. The post Kenyan government to buy stake in $16 billion Dangote Lamu oil refinery – Ruto appeared first on Nairametrics .
Kenyan President William Ruto announced on Wednesday, September 30, 2026, that the government plans to invest in the proposed $16 billion Lamu oil refinery through the National Infrastructure Fund. The announcement took place at the groundbreaking ceremony in Lamu, marking a new financing model for one of East Africa's largest planned industrial projects.
The Kenyan government intends to acquire a stake in the refinery alongside plans by Aliko Dangote, the Nigerian billionaire, to allow Kenyans to buy shares through the Nairobi Securities Exchange, potentially broadening local ownership of the project.
The government's financing structure involves deploying state assets, including land, alongside the infrastructure fund to invest in the refinery being developed by Dangote. This departure from traditional approaches to funding large infrastructure projects, primarily through government borrowing or public expenditure, signifies a shift in how significant industrial initiatives are being approached in Kenya.
The proposed refinery, expected to generate up to 1,000 megawatts of electricity and produce one million tonnes of polypropylene, will process crude from Kenya's Turkana oilfields as well as supplies from other parts of Africa. With the potential to reduce the region's dependence on imported petroleum products, the facility is also intended to serve as an anchor for a wider industrial complex around Lamu. This industrial complex is anticipated to foster additional economic activity in the area.
The project's significance extends beyond Kenya, with Tanzanian billionaire Mohammed Dewji reportedly expressing interest in investing $100 million in Dangote's proposed oil refinery in Kenya. This interest from private investors, combined with the Kenyan government's potential investment through the National Infrastructure Fund, underscores the project's potential to become one of Africa's largest refining facilities as Dangote expands his footprint across East Africa.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
