Dangote breaks ground on Kenya’s $16bn Lamu refinery

Africa’s richest man broke ground on Tuesday on a $15-16 billion oil refinery at Lamu in Kenya, one of the largest industrial projects in the country’s history.
The 700,000-barrel-per-day facility, backed by Aliko Dangote, is expected to transform Kenya from a fuel importer into a regional refining hub. Kenya plans to take a stake of about 10% in the project.
The ceremony went ahead despite a court in Malindi keeping a status-quo order in place until an October 14 hearing on a legal challenge to the project. The order does not block the groundbreaking itself.
Officials said construction would create thousands of jobs and reduce Kenya’s dependence on imported petroleum products. The refinery is expected to take several years to complete, with output aimed at both domestic use and export to neighbouring countries in East Africa. Energy analysts said the refinery could reshape East Africa’s fuel trade, cutting import bills for landlocked neighbours that currently depend on shipments through Mombasa. Dangote already operates Africa’s largest refinery in Nigeria, and the Kenya project extends his industrial footprint across the continent.
Leave a Reply