RismadarVoice Reporters
September 30, 2026
Africa’s richest man, Aliko Dangote, is set to break ground on a proposed $16 billion oil refinery in Kenya as part of plans to expand Africa’s refining capacity and reduce dependence on imported petroleum products.
The refinery, planned for Lamu along Kenya’s Indian Ocean coastline, is expected to have a processing capacity of about 700,000 barrels of crude oil per day.
If completed as planned, the facility would rank among Africa’s largest oil refineries.
Dangote said the project would complement efforts to increase the amount of African crude refined on the continent rather than exported and subsequently imported as finished petroleum products.
The proposed development would also include a 1,000-megawatt power plant, with about half of the electricity expected to be supplied to Kenya’s national grid.
Lamu was selected after other possible locations, including Tanzania and the Kenyan port city of Mombasa, were considered.
Dangote said the location offered advantages including deep-sea access and suitable conditions for developing the refinery and associated infrastructure.
The project has, however, encountered legal and environmental concerns.
A local community has challenged aspects of the development in court over land rights and related issues. A court ruling published on Monday allowed the planned groundbreaking to proceed while the substantive legal case remains pending.
Environmental campaigners have also raised concerns about the potential impact of the project.
Dangote said the disputes would not prevent the development from proceeding, maintaining that the company was prepared to address issues arising during implementation.
Questions have also emerged over where the refinery would obtain sufficient crude oil, given the developing state of oil production in parts of East Africa.
Dangote said the facility would not rely solely on crude produced in Kenya or neighbouring countries.
According to him, crude could initially be sourced from international markets, including the Middle East and the United States, while the refinery would also be positioned to process supplies from East African producers as regional production expands.
Dangote said Africa needed to develop refining infrastructure ahead of expected increases in population, economic activity and energy demand.
He projected that more African countries could move towards fuel self-sufficiency by 2030 if investments in refining capacity continued.
“By 2030, the majority of African countries will be self-sufficient in fuel,” Dangote said.
He also advocated greater use of African technical expertise in executing major infrastructure projects, arguing that the continent should progressively reduce its dependence on foreign contractors and specialists.
Despite the refinery’s proposed 700,000-barrel-per-day capacity, Dangote described the development as only an initial step when measured against Africa’s long-term energy requirements.
“For the region, it’s a big refinery, it’s a big investment, but it is a start-up,” he said.
