Dangote Group plans to finance its proposed 700,000-barrel-per-day oil refinery in Kenya through a combination of internal cash flow, bond issuances and an initial public offering, making it one of the company’s most ambitious expansion projects outside Nigeria.
The refinery, to be located in the coastal town of Lamu, is expected to become East Africa’s largest once completed. Edwin Devakumar, Vice President of Dangote Industries, said construction is expected to take up to three years, although the company has yet to disclose the project’s total cost. He noted, however, that the investment would be comparable to the more than $20 billion spent on the Dangote Refinery in Lagos.
Devakumar said the group intends to rely primarily on cash generated from its existing businesses while also raising capital through debt markets and a planned public listing. The financing strategy is designed to reduce reliance on bank borrowing while giving investors an opportunity to participate in the expansion of Dangote’s energy business.
The planned refinery is expected to supply refined petroleum products to Kenya and neighbouring countries, reducing East Africa’s dependence on imported fuels. The project forms part of Dangote’s broader strategy to replicate the success of its Lagos refinery and strengthen regional energy security through local refining capacity.
Lamu was selected after the company evaluated several locations across East Africa, including Tanga in Tanzania. According to Devakumar, Kenya offered stronger commercial prospects, better supporting infrastructure and easier access to regional markets, making it the preferred site for the investment.
The announcement comes as the Dangote Refinery in Nigeria continues to ramp up operations following its commissioning in 2024. With a refining capacity of 650,000 barrels per day, the facility has significantly increased exports of refined petroleum products across Africa and beyond, strengthening the group’s position as a major player in the global downstream oil industry.
The Kenya project also aligns with Dangote Group’s broader capital-raising strategy. The company has increasingly tapped international debt markets and is preparing a public listing of its refinery business to support future expansion while broadening its investor base.
If completed, the Lamu refinery would represent one of the largest industrial investments in Kenya’s history and could reshape the region’s fuel supply chain. Beyond reducing import dependence, the project is expected to stimulate industrial activity, create jobs and position Kenya as a key refining and petroleum distribution hub for East and Central Africa.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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