Dangote Group will break ground on a $17 billion oil refinery in Lamu, Kenya, by the end of September 2026, with completion targeted within three years of construction starting. Aliko Dangote, president of Dangote Industries Limited, made the announcement on Monday, September 14, 2026, during the opening of the Dangote Petroleum Refinery and Petrochemicals FZE initial public offering (IPO) in Lagos.
Refinery Project Details and Timeline
The planned refinery will be built in Lamu on Kenya's coast, marking the group's first major refining project in East Africa. Earlier estimates had put the Kenyan refinery's construction timeline at around five years, but Dangote's latest comments suggest the project could be wrapped up in three years once work begins.
Dangote framed the Kenyan project as part of a deliberate push to capitalise on untapped opportunities across the continent. He said: "There's a lot of value in Africa. Africa is like a scratch card; unless you scratch it, you will not see the use of it. The opportunities are immense."
Continental Energy Expansion
Beyond Kenya, the billionaire announced plans to build a 2,650-kilometre pipeline stretching from Namibia through Botswana to South Africa. A separate pipeline project heading towards Zimbabwe is also in the works, with construction expected to begin next month.
The refinery would give Dangote a major foothold on Africa's eastern coast, complementing the group's existing operations at the Dangote Refinery in Lekki, Lagos, which processes 650,000 barrels of crude oil per day and is currently Africa's largest single-train refinery.
East African Governments Eye Equity Stakes
The Lamu refinery has already drawn interest from several governments in the region. Kenya's President William Ruto's economic adviser, David Ndii, previously indicated that Kenya was considering a 10% stake in the project. Ethiopia and Rwanda have also shown interest, with Dangote having offered East African countries a combined 30% equity stake in the facility.
The Kenyan project is part of a wider push into East Africa, where regional governments have expressed interest in taking an equity stake.
Dangote Refinery IPO Opens to Investors
Dangote's announcement coincided with the launch of the Dangote Petroleum Refinery and Petrochemicals FZE IPO, which is targeting about $1.6 billion in fresh capital and values the refinery business at close to $50 billion. The offer has generated significant interest among Nigerian retail investors, with banks, stockbrokers, and fintech platforms all competing to process subscriptions.
The twin developments, a new East African refinery and the southern Africa pipeline network, point to Dangote Group's ambition to build an integrated energy business that spans multiple African regions.
