Kenya: Dangote's Lamu Oil Refinery to Be Constructed Through Debt, Own Financing

What the report says

Capital FM, as republished by AllAfrica, reports that the planned Dangote oil refinery in Lamu, Kenya, will be built using a mix of debt and shareholder financing ahead of a construction start targeted for October 2026. The article says the project’s total cost has been revised to about Sh2 trillion, with roughly 70% expected from debt and the remaining 30% from shareholders, including Aliko Dangote.

The refinery is described as a major industrial project for Lamu Island and for the region more broadly. Based on the figures cited in the report, debt financing would amount to about Sh1.45 trillion, while shareholder funding would cover around Sh621 billion. Dangote is quoted in the source as saying groundbreaking would begin in October, after which construction would start.

The facility is expected to process 700,000 barrels of crude oil per day, which would make it the largest refinery in East Africa and the second-largest in Africa after Dangote’s existing refinery in Lagos, Nigeria. The report says the project is intended to supply refined fuel to Kenya and nearby countries such as Uganda, Tanzania, South Sudan and the Democratic Republic of the Congo, which could help reduce reliance on imported petroleum products.

More broadly, the project reflects Dangote’s push to expand his refining business into East Africa, following plans announced in April, according to the report. If completed as described, it would add significant refining capacity to a region that currently depends heavily on imports.