Nigeria’s Dangote Group has offered East African governments a combined 30% equity stake in a proposed $17 billion oil refinery planned for Lamu on Kenya’s northern coast.
Speaking at a capital markets forum in Nairobi, David Ndii, Chief Economic Adviser to Kenyan President William Ruto, disclosed that Kenya, Ethiopia, and Rwanda have expressed formal interest in taking up equity positions. Kenya is considering a 10% stake valued at approximately $500 million, with total regional government investments expected to reach $1.5 billion.
The proposed 700,000 barrel-per-day (bpd) plant would replicate the scale of Dangote’s 650,000–700,000 bpd refinery in Lekki, Lagos, serving as a primary downstream processing hub for East Africa to reduce dependence on imported refined fuel.
Strategic Rationale & Regional Market Integration
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Financing & Market Alignment: The capital structure for the refinery envisages 70% debt and 30% equity. Securing sovereign equity from key regional importers like Ethiopia and Rwanda guarantees anchored off-take agreements, reducing commercial volume risk across sub-Saharan Africa.
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Lamu Port Infrastructure Integration: Choosing Lamu leverages the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor. The location allows the refinery to receive imported or regional crude and distribute refined products via pipeline and marine transport to Uganda, South Sudan, Rwanda, Burundi, and the Democratic Republic of Congo.
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Funding & Strategic Expansion: The project forms part of Aliko Dangote’s vision to grow group annual revenues from under $20 billion to $100 billion by 2030. Capital for the development will be supported by cash flows, project debt, and proceeds raised from the planned initial public offering (IPO) of Dangote Petroleum Refinery on the Nigerian Exchange (NGX) and international listings.
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