Dangote to break ground on $17-20B Lamu refinery in Kenya Sept 30
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Kenya breaks ground September 30 on the Dangote-backed East Africa Oil Refinery in Lamu, priced at $17 billion by Kenyan officials and $20 billion by Aliko Dangote. The project is designed to process 700,000 barrels of crude oil per day and serve six East African nations. Construction is expected to begin in October and run roughly three years.
Key Facts
- Kenya breaks ground September 30 on the Dangote-backed East Africa Oil Refinery in Lamu, priced at $17 billion by Kenyan officials and $20 billion by Aliko Dangote.
- The refinery is designed to process 700,000 barrels of crude oil per day at Lamu's deep-water port.
- Disclosed financing for the project totals $1.6 billion against a price tag of $17 billion to $20 billion.
- Tanzanian billionaire Mohammed Dewji has committed $100 million to the project.
- Dangote Group offered East African nations a combined 30% equity stake valued at $1.5 billion on August 21.
Project Scope and Financing
The East Africa Oil Refinery in Lamu is priced at $17 billion by Kenyan officials and $20 billion by Aliko Dangote himself. It is designed to process 700,000 barrels of crude oil a day at Lamu's deep-water port. The refinery would serve Kenya, Uganda, South Sudan, Rwanda, Burundi and the Democratic Republic of Congo. Disclosed financing for the project totals $1.6 billion against a price tag of $17 billion to $20 billion. Tanzanian billionaire Mohammed Dewji has committed $100 million to the project.
Equity and Pipeline Plans
Dangote Group offered East African nations a combined 30% equity stake valued at $1.5 billion on August 21. Kenya's economic adviser David Ndii put Kenya's individual 10% allocation at about $500 million. Two separate pipelines are tied to the Kenya project, and neither has a disclosed cost, capacity or completion date. Ruto told Dangote he is discussing construction of a line from Turkana's oil fields to Lamu to unlock the oil that Kenya has in Turkana. Dangote is building two more pipelines unrelated to Kenya: a Djibouti-Ethiopia gas and petroleum pipeline starting construction within two months, and a separate $3.5 billion, 2,650-kilometer corridor connecting Namibia, Botswana and South Africa.
Regional Competition and Timeline
Tanzania and Uganda have partnered with Vitol Bahrain on a $20-billion energy hub in Tanga, built around the nearly complete East African Crude Oil Pipeline. Uganda is backing both the Lamu and Tanga projects simultaneously, while separately advancing a UAE-backed, 60,000-barrel-per-day refinery of its own in Hoima. In 2016, Uganda abandoned a joint pipeline route with Kenya in favor of Tanzania's. Dangote anticipates completion around 2029 to 2030, with construction beginning in October and running roughly three years from groundbreaking.
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