Africa’s Richest Man Proposes To Build 700,000 Bpd Oil Refinery In Kenya

What the report says

Yahoo Entertainment, carrying an Oilprice.com report by Alex Kimani published July 22, said Nigerian billionaire Aliko Dangote is proposing a $17 billion oil refinery on Kenya’s Lamu Island with capacity to process 700,000 barrels per day. The report says the project is aimed at reducing East Africa’s dependence on imported refined fuels after Kenya Petroleum Refineries Limited, described as the region’s last operating refinery, closed in 2013.

According to the report, the planned refinery would serve Kenya and nearby markets including Uganda, South Sudan, Rwanda, Burundi and the Democratic Republic of Congo. Its proposed capacity would be larger than the region’s current refined-fuel demand cited in the article, leaving potential output for export. The report points to Lamu’s deep natural harbor and the LAPSSET Corridor as logistical advantages, and says the project could create more than 60,000 jobs if built and operated as planned.

Oilprice.com also framed the proposal in the context of Dangote’s large refinery in Nigeria and the African Continental Free Trade Area, suggesting the Kenya project could test regional industrial integration and intra-African fuel trade. Tanzanian businessman Mohammed Dewji was reported to have expressed interest in investing $100 million.

The proposal is already drawing objections, the report said. Greenpeace Africa, local groups and legal advocates have warned of potential harm to Lamu’s UNESCO-linked marine environment, including mangroves and coral reefs, and are calling for full environmental and social assessments and public participation. Economists cited by the article also raised concerns about possible market dominance if tax incentives or anti-dumping protections are granted.