President Paul Kagame confirmed during an August 24, 2026 press conference in Kigali that Rwanda has initiated early-stage discussions to acquire an equity stake in Aliko Dangote’s proposed $16 billion crude oil refinery in Lamu, Kenya.
Kagame expressed Rwanda’s desire to join the regional energy initiative by stating that the nation would welcome the chance to take part in an investment of this magnitude.
“In a way, there has been. But it is too early to talk about the details because I think it is work in progress. Things are still being thought out,” Kagame said.
“What I can say is that Rwanda would be very happy to be part of that kind of investment,” Kagame added.
Kagame’s statement follows disclosures by David Ndii, Chief Economic Adviser to President William Ruto, outlining a proposed financing structure where 30% of total project equity (~$1.5 billion) is offered to East African partner states. Under this structure, Kenya is evaluating a 10% stake worth $500 million, while the remaining equity portion is open to regional partners including Rwanda and Ethiopia.
Designed with a crude distillation capacity of 700,000 barrels per day (bpd), the facility will serve as a primary refining and distribution hub for Kenya, Uganda, Rwanda, South Sudan, Ethiopia, and the Democratic Republic of Congo.
Strategic & Regional Energy Trade Rationale
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Anchor Demand & Trade Protection: Securing regional sovereign equity directly aligns off-take commitments across landlocked East African economies. Participating governments are expected to back regulatory safeguards and trade frameworks to prioritize regional refined supply over third-party imports.
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LAPSSET Corridor Synergies: The choice of Lamu leverages the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) infrastructure corridor, facilitating bulk pipeline and maritime logistics into inland markets to reduce freight costs and foreign currency pressure.
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Capital Allocation Model: Dangote Industries intends to fund 70% of the project via debt and 30% via private and sovereign equity. Proceeds from the planned Initial Public Offering (IPO) of the Dangote Petroleum Refinery in Lagos will help anchor the group’s equity commitments for its East African expansion.
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