Dangote refinery in Lamu set to begin construction in October

Construction of the proposed Dangote oil refinery in Lamu is expected to begin in October, billionaire businessman Aliko Dangote has said.

Dangote told the BBC that the refinery will cost about Sh2 trillion, lower than the initial estimate of Sh2.2 trillion.

He said preparations for the project were progressing and construction would begin after the groundbreaking ceremony.

“By October this year, we will be groundbreaking. Once we break the ground, we will begin the construction,” Dangote said.

The proposed refinery is expected to have a processing capacity of 700,000 barrels of crude oil per day, making it the largest refinery in East Africa and the second-largest in Africa after Dangote’s refinery in Lagos, Nigeria.

The Lamu facility is expected to be modelled on the Dangote Petroleum Refinery in Nigeria, which has a capacity of 650,000 barrels per day.

Dangote announced plans in April to expand his refining operations into East Africa, with Kenya identified as a key market for the investment.

The Lamu refinery is expected to process crude oil into products such as petrol, diesel, aviation fuel and other petroleum products for the Kenyan market and neighbouring countries.

Once operational, the facility could supply refined petroleum products to Uganda, Tanzania, South Sudan and the Democratic Republic of Congo, in addition to Kenya.

The investment is expected to reduce the region’s reliance on imported refined petroleum products and strengthen East Africa’s energy security.

The project could also create thousands of jobs during construction and operation while generating business opportunities for local suppliers, contractors, transporters and other firms.

Dangote’s planned investment comes as Kenya seeks to position Lamu as a major regional trade and logistics hub following the development of the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor.

The refinery would potentially benefit from Lamu’s strategic location on the Indian Ocean and its connection to regional markets.

However, the project will require significant infrastructure, including crude oil supply systems, storage facilities, pipelines, roads and other supporting facilities.

Dangote’s refinery in Lagos has demonstrated the scale of investment required to develop a major petroleum processing facility, with the Nigerian plant serving as a model for the proposed Kenyan project.