Nigerian industrialist Aliko Dangote is moving forward with a $17 billion refinery project in Kenya, offering Kenya, Ethiopia, and Rwanda a combined 30% equity stake in the venture. The announcement was made by David Ndii, economic adviser to Kenyan President William Ruto, during a capital markets forum in Nairobi.
Equity Structure and Regional Investment
Kenya has been offered a 10% stake in the project, valued at approximately $500 million. Ethiopia and Rwanda have also expressed interest in participating. According to Ndii, the combined contribution from the three East African countries could reach about $1.5 billion.
“The total for the region is about $1.5 billion,” Ndii said. He added that Dangote is prepared to support participating countries that may struggle to commit to purchasing refined petroleum products from the refinery, as reported by Leadership.
Project Shift from Tanzania to Kenya
The refinery was initially planned for Tanga, Tanzania, but Dangote shifted the project to Lamu on Kenya’s coast after evaluating commercial and technical considerations. The project, which includes the refinery and associated infrastructure, is expected to cost about $17 billion and could take roughly five years to complete.
The proposed facility would mirror the scale of Dangote’s massive refinery in Lagos and potentially transform the supply of refined petroleum products across East Africa. Ndii noted that the project has already attracted interest from private investors in the region, with Tanzanian businessman Mohammed Dewji previously indicating a willingness to invest $100 million.
Expanding Refining Ambitions
The Kenya project is part of Dangote’s broader strategy to expand his refining footprint beyond Nigeria while tapping capital markets to finance future growth. In Nigeria, the Dangote Petroleum Refinery is targeting an increase in capacity from its current 700,000 barrels per day to 1.4 million barrels per day.
The company is also pursuing plans to access additional capital through a potential listing. Ndii referenced financing arrangements involving a reported $1 billion underwriting programme, comprising a completed $600 million private placement and a further $400 million commitment, subject to regulatory and market conditions.
Impact on East African Energy and Capital Markets
If the Kenyan project proceeds, the proposed equity structure could give Kenya, Ethiopia, and Rwanda direct ownership in a major energy project while strengthening their access to refined fuel supplies. It could also deepen the connection between East African capital markets, local investors, and the region’s growing energy needs.
Legit.ng earlier reported that refiners in the United States and India have increased fuel exports as disruptions affect supplies from Russia and the Middle East, according to Reuters, citing government data, shipping records, analysts, and traders. The supply squeeze has forced major fuel-importing countries to seek alternative sources of diesel, petrol, and aviation fuel. Dangote Refinery is increasingly benefiting from that shift, expanding beyond Nigeria and other African markets to compete for buyers in Europe.
