LAMU — Dangote Industries Limited will construct a 700,000-barrel-per-day oil refinery in Lamu, Kenya. This decision follows consideration of other locations, including Tanzania and Mombasa, Kenya.

Construction of the refinery in Lamu is expected to take approximately 30 months. Aliko Dangote, the head of Dangote Industries, held discussions last month with Tanzanian President Samia Suluhu Hassan regarding the project.

A statement from Dangote's office indicated that he explained "the commercial and technical considerations behind the Group's decision to locate its planned East African refinery in Lamu" during his meeting with President Hassan. Dangote invited Tanzania to participate in the Lamu investment.

Prior to the selection of Lamu, Dangote had indicated an inclination towards Mombasa, Kenya, as the refinery's location. Tanzania was also initially considered for the project.

Dangote Industries Limited operates another refinery in Nigeria, which has a capacity of 650,000 barrels per day. That facility, which began operations in 2024, is currently the largest on the African continent. Dangote plans to expand the capacity of the Nigerian refinery to 1.4 million barrels per day by 2028.

Why It Matters

This project represents an industrial development for Kenya, establishing a major oil refining facility in East Africa. The 700,000-barrel-per-day capacity aims to serve the region. The decision to locate in Lamu, following consideration of other sites, finalizes the geographical focus for this large-scale investment by Dangote Industries.

The project also builds on Dangote's existing operations in Nigeria, where the company runs Africa's largest refinery and plans for future expansion. This indicates a continued strategic focus by Dangote Industries on increasing refining capacity within Africa.