- Dangote plans to invest about Ksh2 trillion in a proposed 700,000 barrel per day oil refinery in Lamu, with construction set to begin in October 2026.
- The project is expected to take four years to complete and will be financed through 30 percent equity and 70 percent debt.
- The refinery is expected to strengthen Kenya’s refining capacity, boost industrial investment and supply fuel to Kenya and the wider East African market.
Aliko Dangote has announced that the proposed Lamu oil refinery will cost approximately Ksh2 trillion, down from the earlier estimate of Ksh2.2 trillion, with construction expected to begin in October 2026.
Dangote said the revised project cost reflects lessons learned from building the Dangote Refinery in Nigeria. He added that these lessons are expected to help reduce construction time and financing costs for the Kenyan project.
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The planned Lamu refinery is expected to process 700,000 barrels of crude oil per day, making it one of the largest proposed oil processing facilities in Africa. Construction is projected to take about four years.
According to Dangote, the refinery will supply Kenya and the wider East African market. The investment will be financed through 30% equity and 70% debt.
Overall, the project is expected to boost Kenya’s energy infrastructure, petroleum refining capacity and regional fuel supply. It also promises a lift to industrial investment, positioning Lamu as a key energy hub in East Africa.
By Ian Khayoyo
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