Dangote and Ruto break ground on $16bn Kenyan refinery

Nigerian billionaire Aliko Dangote has extended a 30% equity stake in his proposed $16 billion refinery to East African countries, with Kenya, Rwanda, and Ethiopia expressing interest, according to a report. The groundbreaking ceremony for the 700,000-barrel-per-day facility at the Port of Lamu in Kenya took place on Wednesday, officially launching the project.

The total investment for the region is estimated at $1.5 billion, and even if some participating countries do not buy petroleum products from the refinery, the arrangement could still proceed. Rwandan President Paul Kagame confirmed preliminary talks with Dangote regarding Rwanda's potential involvement. The refinery, expected to cost around $16 billion, will process 700,000 barrels of crude oil daily and will be accompanied by a 1,000-megawatt power plant and petrochemical facilities.

Dangote emphasized that the Lamu refinery would be completed within 40 months and compared it to his Lagos refinery, stating that it could establish a new chapter in Africa's industrial journey and strengthen Kenya's position as a regional energy and industrial hub. The project is anticipated to generate about 60,000 jobs and could source crude from various suppliers to avoid dependence on a single source.

However, the project faces legal and environmental concerns, including a Kenyan court order in a land dispute involving residents of Chandavai in Lamu, and environmental groups' apprehensions about the impact on the local marine ecosystem and communities.