Dangote Industries begins work on $17 billion refinery in Kenya
via Punch Nigeria5 min read
Dangote Industries Limited has started preliminary work on its proposed $17 billion, 700,000-barrels-per-day refinery in Kenya, which is expected to become East Africa鈥檚 largest refining project. The company has selected a site on Lamu Island off the Kenyan coast, with soil tests and engineering design currently underway. The refinery is projected to take about three years to complete and will supply refined petroleum products to Kenya and neighboring countries, aiming to reduce East Africa鈥檚 reliance on imported fuels. Aliko Dangote, President of the Dangote Group, personally assured the Presidents of Kenya and Uganda of his commitment to establish the refinery in East Africa. This project is Dangote Group鈥檚 largest refining investment outside Nigeria and is part of its strategy to expand refining capacity across Africa. The financing will come from a combination of internally generated cash, bonds, and proceeds from the company鈥檚 planned initial public offering. The proposed Kenyan refinery reflects a growing recognition in Africa that local refining is crucial for energy security, foreign exchange conservation, and industrial development. This initiative follows the successful commissioning of the 650,000-barrels-per-day Dangote refinery in Lagos, Nigeria, which has significantly boosted local fuel production. Dangote Industries also plans to increase its combined refining capacity to 2.1 million barrels per day across Nigeria and Kenya, and invest an additional $46 billio
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