Lamu’s Sh2 Trillion Bet: Dangote Sets September 30 Date for Mega Oil Refinery

Nigerian industrialist Aliko Dangote has set September 30, 2026, as the groundbreaking date for a massive oil refinery planned for Lamu County.

The facility is expected to process approximately 700,000 barrels of crude oil daily. If completed as planned, it would become East Africa’s largest refinery and Dangote Group’s biggest refining investment outside Nigeria.

Construction is expected to take about three years. The refinery would supply Kenya and neighbouring markets, potentially reducing the region’s dependence on imported refined petroleum products.

The project is estimated to cost approximately $16 billion, equivalent to more than Sh2 trillion. About 70 per cent of its financing is expected to come from debt, with the remaining amount raised through shareholder funding.

For Lamu, the investment could bring new opportunities in logistics, construction, storage, manufacturing and supporting infrastructure. It could also strengthen the strategic importance of the Lamu Port–South Sudan–Ethiopia Transport corridor.

However, the groundbreaking will not immediately translate into cheaper fuel. Pump prices will continue to depend on crude-oil costs, taxation, exchange rates and distribution expenses.

The September ceremony will therefore mark the beginning of a long and closely watched test: whether one of Kenya’s most ambitious industrial promises can move from announcement to production.