Dangote Sets September 30 Groundbreaking for $16bn Lamu Refinery

Sep 7

1 min read

Construction of the proposed Lamu oil refinery is set to begin on 30 September after Dangote Group confirmed a groundbreaking date for the project.

Key Takeaways

Dangote has set 30 September 2026 for groundbreaking of the proposed Lamu oil refinery.
The refinery is planned to process 700,000 barrels of crude oil per day.
The project is estimated at about US$16 billion in its latest reported costing.
Uganda, Kenya and other regional producers could become potential crude suppliers, while neighbouring countries are expected to provide markets for refined products.
Kenya also envisages a wider industrial complex, power plant and special economic zone around the project.

The planned 700,000-barrel-per-day facility would be the largest refinery in East Africa if completed. It is expected to supply petroleum products to Kenya and neighbouring markets, including Uganda, Tanzania, South Sudan and the Democratic Republic of Congo. The project comes as East Africa's oil landscape is changing, with Uganda and Kenya moving towards commercial crude production and South Sudan continuing to produce crude oil.

Lamu refinery? — An illustrative impression of the Lamu Refinery; *Credit: CFUg*

The project is being positioned as more than a refinery. Kenya plans to develop a wider industrial and logistics hub around Lamu, including a proposed 1,000 MW power plant and special economic zone.

Dangote has also offered East African governments an equity stake in the project, with Kenya, Ethiopia and Rwanda among the countries reported to be considering participation.

The project could therefore reshape regional petroleum supply chains while strengthening Lamu Refinery's position as an energy and industrial hub.

Source: Reuters and Kenyan reporting, 3–4 September 2026.