Lagos, Nigeria (VOICE OF NAIJA)- THE Dangote Group’s proposed oil refinery on Kenya’s coast is expected to cost about $17 billion and take between four and five years to complete, marking one of the largest industrial investments planned in East Africa.
According to a Bloomberg report, a spokesperson for Dangote Industries Ltd. confirmed the project’s estimated cost and construction schedule, saying the refinery is designed to replicate the scale of the company’s flagship refining complex in Lagos, Nigeria.
The proposed facility will mirror the 650,000-barrels-per-day Dangote Refinery, Africa’s largest single-train refinery, which has significantly transformed Nigeria’s downstream petroleum sector by reducing the country’s dependence on imported fuel.
The latest disclosure builds on commitments made earlier this year by Africa’s richest man, Aliko Dangote, during the Africa Finance Corporation Summit in Nairobi, where he announced plans to establish a world-class refinery in East Africa through a regional partnership.
Speaking before William Ruto and Yoweri Museveni, Dangote pledged to lead the execution of the project.
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“My commitment today here is that we will lead the refinery. We’ll make sure that the refinery is built within the next four to five years,” he said.
Although initial discussions centred on locating the refinery in Tanga, the project was later moved to Lamu, a strategic coastal town selected for commercial and technical considerations.
The project also aligns with Uganda’s broader energy ambitions. In May, President Museveni disclosed that he had discussed the refinery initiative with Dangote, noting that Uganda deliberately postponed commercial crude production to prioritise domestic refining.
According to Museveni, exporting crude without developing refining capacity would limit the country’s long-term economic and strategic benefits.
If completed, the Kenyan refinery is expected to rank among Africa’s largest crude-processing facilities, reinforcing efforts by African countries to expand local refining capacity, improve energy security and reduce dependence on imported petroleum products.
The proposed investment comes as the Dangote Refinery in Lagos continues to reshape Africa’s refining landscape.
Since commencing operations, the refinery has reached full production capacity, helping Nigeria reduce fuel imports while reversing years of declining refining capacity across the continent.
Its success has encouraged similar projects elsewhere in Africa. Mozambique is considering a proposed 200,000-barrel-per-day refinery backed by Nigerian businessman Benedict Peters, while Uganda is advancing plans for a 60,000-barrel-per-day refinery to serve domestic demand and neighbouring markets.
The East African project comes as Dangote accelerates expansion of its flagship refinery complex in Lagos.
The facility currently processes about 650,000 barrels of crude oil per day, with plans to increase capacity to approximately 1.4 million barrels daily over the next few years, potentially making it one of the world’s largest refining complexes.
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To support the expansion, African Export-Import Bank is providing $2.5 billion as part of a broader $4 billion syndicated term loan, while the Dangote Group has signed a $400 million equipment supply agreement with XCMG Construction Machinery to accelerate work on the project.
Beyond fuel production, the expansion will significantly increase petrochemical output. Annual polypropylene production is projected to rise from about 900,000 metric tonnes to 2.4 million metric tonnes, strengthening the refinery’s contribution to Africa’s manufacturing and industrial value chain.
The planned Kenya refinery underscores Dangote’s strategy of extending large-scale energy infrastructure beyond Nigeria, positioning the company as a key player in Africa’s drive for energy security, industrialisation and regional economic integration.
