Key facts
- Dangote Group plans to build a 700,000 bpd refinery in Kenya.
- East African nations have been offered a 30% stake in the project.
- The estimated cost of the refinery is $17 billion.
- Kenya's potential stake is valued at $500 million.
- The refinery's capacity is designed to meet regional demand and allow for exports.
Dangote Group, led by Africa's wealthiest individual Aliko Dangote, has proposed offering a 30% equity stake in a planned mega-refinery in Kenya to East African nations. The proposed facility, slated for Lamu Island, is designed to process up to 700,000 barrels of crude oil per day, with an estimated construction cost of $17 billion.
This ambitious project aims to serve Kenya, Uganda, South Sudan, Rwanda, Burundi, and the Democratic Republic of the Congo (DRC). The refinery's planned capacity significantly exceeds the region's current demand of approximately 450,000 barrels per day, creating potential for exports to other African markets.
David Ndii, chair of the Kenyan President’s Council of Economic Advisers, stated that Kenya's potential 10% stake could be worth $500 million, with the total regional investment valued at $1.5 billion. Ndii expressed confidence in securing participation, noting a willingness to backstop if necessary.
The Kenyan refinery is envisioned to mirror the scale of Dangote's existing refinery in Nigeria, which has a capacity of 650,000 barrels per day and meets Nigeria's entire fuel demand. Dangote is also expanding its Nigerian complex, further solidifying its influence in global fuel markets.