Aliko Dangote, president of Dangote Group, has broken ground on a proposed $16 billion oil refinery in Lamu, Kenya, marking the start of construction on a facility designed to process 700,000 barrels of crude oil per day.
Gatekeepers News reports that Dangote and Kenyan President William Ruto performed the groundbreaking ceremony on Wednesday at the site of the proposed Dangote East Africa Refinery and Petrochemicals Special Economic Zone. The project is expected to be completed and commissioned within 40 months.
Speaking at the ceremony, Dangote said the refinery would be modelled partly on the group’s Nigerian refinery and would process about 700,000 barrels of crude daily. He added that the facility would also generate 1,000 megawatts of electricity.
“We will come back here and commission this refinery in 40 months from today,” Dangote said.
He said the project would go beyond refining crude, with plans to develop an industrial ecosystem around energy, petrochemicals, logistics, engineering, marine services and manufacturing.
Dangote also disclosed plans to establish a training school for 1,000 Kenyan engineering graduates as part of the project.
The refinery is expected to produce petroleum products for Kenya and other East African markets, reducing the region’s reliance on imported refined products. Reuters reported that Dangote has offered regional governments a combined 30 percent stake in the project, while the refinery’s shares are expected to be listed on the Nairobi Securities Exchange.
Ruto described the project as an investment in energy security and industrialisation, saying it could transform Kenya and the wider region’s energy landscape.
The project, however, faces legal and environmental challenges. A Kenyan court recently ordered that the existing situation at the Lamu site be maintained following a petition by some residents and other parties opposing the development. Dangote Group said the ruling would not stop the groundbreaking, although it could affect some site activities.
The Lamu refinery will expand Dangote’s refining operations beyond Nigeria, where its 700,000-barrel-per-day refinery is already operating. Reuters reported that construction of the Kenyan facility is scheduled for completion in 2030.
