Tanzania’s richest businessman pledges Sh12.9 billion investment in proposed Lamu oil refinery

Tanzania’s richest businessman, Mohammed Dewji, has announced plans to invest $100 million (about Sh12.9 billion) in Aliko Dangote’s proposed oil refinery in Lamu, strengthening support for one of East Africa’s largest planned energy projects.

Dewji’s pledge comes days after the Dangote Group selected Lamu County as the preferred location for the multi-trillion-shilling refinery.

The proposed refinery is expected to cost about Sh2.2 trillion and will have the capacity to process 700,000 barrels of crude oil per day. Once completed, it will become the largest oil refinery in East Africa and the second largest in Africa after Dangote’s refinery in Lagos, Nigeria.

A site has already been identified on Lamu Island, where preliminary engineering studies, design work and ground investigations are currently underway ahead of construction.

According to people familiar with the project, funding will come from a mix of the Dangote Group’s internal resources, corporate bond issuances and proceeds from a planned initial public offering (IPO).

Construction of the refinery is expected to take about five years.

Once operational, the facility is expected to supply refined petroleum products to Kenya, Uganda, Tanzania, South Sudan and the Democratic Republic of Congo, helping reduce the region’s dependence on imported fuel while strengthening energy security and supporting economic growth.