Kenya Launches $20B Oil Refinery Project Backed by Aliko Dangote

Key Facts

1Kenya breaks ground September 30 on the Dangote-backed East Africa Oil Refinery in Lamu.

2The refinery is designed to process 700,000 barrels of crude oil per day with an estimated cost between $17 billion and $20 billion.

3Tanzanian billionaire Mohammed Dewji committed $100 million to the project, which has $1.6 billion in disclosed financing so far.

In a move reflecting East Africa's ambitions to become a regional energy hub, Kenya is set to break ground on a massive new oil refinery in Lamu's deep-water port on September 30. Backed by billionaire Aliko Dangote, the facility is designed with a processing capacity of 700,000 barrels of crude oil per day. The project, estimated to cost between $17 billion and $20 billion, is positioned to supply fuel to Kenya, Uganda, South Sudan, Rwanda, Burundi, and the Democratic Republic of Congo.

According to disclosed reports, the project has secured $1.6 billion in financing so far, including a $100 million commitment from Tanzanian billionaire Mohammed Dewji. The refinery faces regional competition from a separate $20 billion energy hub in Tanga being developed by Tanzania and Uganda in partnership with Vitol Bahrain. To bolster regional cooperation, the Dangote Group has reportedly offered East African nations a combined 30% equity stake in the venture.

Construction is expected to begin in October and last approximately three years, with a target completion date around 2029 or 2030. In the broader economic context, market participants are monitoring financing conditions following the U.S. Federal Reserve's decision on September 16, 2026, to set interest rates at 4%. Such global monetary shifts remain a critical factor for the long-term funding of large-scale infrastructure projects in the African continent.