Construction has begun on Dangote Group’s USD 16 billion oil refinery in Lamu, Kenya, marking the start of a 700,000-barrel-per-day project aimed at serving East African fuel markets.
Prime Minister Abiy Ahmed(PhD) joined Kenyan President William Ruto, Ugandan President Yoweri Museveni and other African leaders at the September 30 groundbreaking ceremony.
The refinery is designed to supply petrol, diesel and aviation fuel to Kenya and neighboring East African markets, with completion targeted around 2030. Dangote says the project is intended to reduce the region’s reliance on imported refined petroleum products.
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Dangote Group has offered East African governments a combined 30 percent equity stake in the refinery as part of efforts to position the project as a regional venture. Ethiopia had previously been reported among countries interested in participating in the investment.
The groundbreaking comes days after Ethiopia announced a separate petroleum infrastructure partnership with Dangote Group involving a 120-kilometre refined-products pipeline linking Damerjog in Djibouti with Dewele in Ethiopia.
The Lamu refinery is expected to serve a regional petroleum market estimated at between 20 million and 30 million metric tons annually, reflecting the scale of East Africa’s demand for petroleum products.
Honeywell Technologies has been brought in to provide engineering services, equipment and licensing for the refinery, while Engineers India Limited has secured an engineering contract valued at about USD 450 million.
The project is moving forward amidst a land dispute involving 133 residents who have challenged development on part of the proposed site. A Kenyan court ordered the parties to maintain the status quo on the disputed land until October 14. Although the ruling did not prevent the September 30 groundbreaking, Dangote Group noted it could still impact certain activities at the site.
