Aliko Dangote is set to begin construction of a Sh2.2 trillion oil refinery in Lamu before the end of 2026, as reported by Money Academy. The proposed plant will process 700,000 barrels of crude oil per day.
The project is expected to complement the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor and the existing Lamu Port. It forms one of the largest private industrial investments planned for Kenya and the wider region.
Dangote Industries selected Lamu after evaluating several sites across East Africa. Company officials confirmed that soil testing and design work have already started at the chosen location on Lamu Island.
The refinery is modelled on Dangote’s flagship facility near Lagos, Nigeria. Once complete, it will rank as the largest refining plant in East Africa and is intended to supply refined products to Kenya, Uganda, Tanzania, South Sudan and neighbouring markets.
East African countries currently import nearly all their refined petroleum products. The new capacity aims to reduce that dependence and strengthen regional energy supply.
Financing is expected to come mainly from Dangote Group’s internal resources, bond issuances and proceeds from a planned initial public offering. Kenya has indicated it will provide limited seed capital through public funds.
Construction timelines cited by the company range from about 30 months to between three and five years. Officials have pointed to a start date before the close of 2026.
Lamu’s deep-water port offers advantages for large crude tankers. Its position along the LAPSSET Corridor also provides potential links to inland markets and other infrastructure under development.
The project has drawn attention for its scale. It is projected to generate substantial employment during construction and operation, though exact figures remain subject to final planning.
Preliminary engineering continues while final approvals and site preparations advance. Dangote has previously invited regional partners, including Tanzania, to participate despite the choice of Lamu.
The facility will process crude from various sources, including potential supplies from within the region. Exact feedstock arrangements are still under discussion.
As design work progresses, the focus remains on meeting the planned construction start. The refinery is positioned as a key addition to Kenya’s industrial and energy infrastructure along the northern coast.
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