Construction of the 700,000-Barrel-Per-Day Dangote Refinery in Lamu to Start by October 2026 at an Estimated Cost of KSh2 Trillion

Construction of the proposed Dangote oil refinery in Lamu is expected to begin by October 2026, according to Nigerian billionaire Aliko Dangote.

The planned refinery will have the capacity to process 700,000 barrels of crude oil per day and is expected to serve Kenya and other markets across East Africa.

Construction to Begin by October

Dangote said the project has reached an advanced planning stage, with groundbreaking expected no later than October 2026.

He said construction will start immediately after the groundbreaking ceremony.

The refinery is expected to take less than four years to complete once construction begins.

Project Cost Estimated at KSh2 Trillion

The estimated cost of the Lamu refinery has been revised downwards from about $17 billion to $16 billion.

This is approximately KSh2 trillion, depending on the exchange rate.

Dangote attributed the lower cost to reduced financing expenses and lessons learned from the construction of his large refinery in Nigeria.

The project will be financed through both equity and debt. Dangote’s company is expected to contribute about 30 per cent of the funding through equity, while the remaining 70 per cent will come from debt financing.

Refinery to Supply Kenya and East Africa

The planned facility is expected to produce petroleum products for the Kenyan market as well as other countries in the region.

With a processing capacity of 700,000 barrels of crude oil per day, the refinery would become one of the largest planned oil-processing projects in Africa.

The project is also expected to expand the supply of petroleum products in East Africa, with the refinery targeting markets beyond Kenya.

If completed as planned, the Lamu refinery could become a major investment in Kenya’s energy sector and strengthen Lamu’s position as an important centre for energy-related projects.

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