President William Ruto is set to break ground on the construction of the Ksh.2 trillion Dangote East Africa Refinery in Lamu on Wednesday, September 30, in a project expected to transform Kenya’s position in the regional petroleum market.

The refinery, which is expected to take up to three years to complete, will produce refined petroleum products for Kenya and neighbouring countries, potentially reducing the region’s dependence on imported fuels.

Dangote Group Chairman Aliko Dangote says the facility is designed to process up to 700,000 barrels of crude oil per day and produce more than 100 million litres of petrol, diesel and aviation fuel daily.

The scale of the project would make it Dangote Group’s largest refining investment outside Nigeria and represents a major expansion of the conglomerate’s energy business into East Africa.

The refinery is expected to serve markets including Ethiopia, South Sudan, Uganda, Tanzania, Rwanda, Burundi and the Democratic Republic of Congo.

Dangote has described the refinery as more than an energy project, arguing that its presence could attract additional investments to Kenya.

“What this investment (Lamu refinery) will do for the Kenyans, it’s not only the refinery; the refinery is like the gate. Once you open and have the refinery, you’ll be shocked at how many people will know to come and invest in Kenya,” he said during an interview in Lagos.

Preparations for the project have already begun at the Port of Lamu, where the Kenya Ports Authority reported the arrival of 2,930 metric tonnes of construction equipment aboard the MV Da Yang on September 26.

The planned facility is also expected to have a significant power-generation component.

Dangote said the Lamu refinery’s power plant could generate about 1,000 megawatts using petroleum coke, with approximately 500 megawatts potentially supplied to the Kenyan government.

The project is also expected to benefit from Lamu’s strategic position along the coast and its port infrastructure.

During his tour of the Dangote Refinery in Lekki, Lagos, on September 25, Ruto said the Lamu project would strengthen fuel reliability and security while supporting industrialisation and creating about 60,000 jobs.

He also pointed to the infrastructure supporting the Nigerian refinery, including a 120-kilometre offshore crude supply system connecting the facility to crude shipments.

“This huge achievement is a testament to what African governments, investors and financial institutions can do together,” Ruto said.

Land concerns

Despite the project’s economic ambitions, its development has also raised concerns among some residents in Lamu.

More than 130 residents of Chandavai have gone to court seeking to stop developments they describe as an unlawful takeover and destruction of land occupied and cultivated by their families for generations.

The residents argue that the project could displace them without adequate resettlement arrangements or compensation.

The legal challenge adds a local dimension to a project being presented by its promoters as a major regional energy and industrialisation investment.

Dangote’s decision to locate the refinery in Lamu followed consideration of other potential locations in East Africa, including Tanzania. After meeting Tanzanian President Samia Suluhu Hassan in June, Dangote said commercial and technical considerations informed the decision to locate the planned regional refinery in Kenya.

Dangote expands refining business

The Lamu project comes as Dangote continues to expand its refining operations.

The group is seeking to list shares in its Nigerian refinery through an Initial Public Offering targeting $1.6 billion. The public offering is scheduled to close on October 13, 2026, and follows a private placement in July that raised $2.5 billion for a six per cent stake.

Dangote has also announced plans to increase the capacity of the Nigerian refinery from 650,000 barrels per day to 1.4 million barrels per day.

For East Africa, however, the Lamu refinery will be watched primarily for its potential impact on fuel supply, regional trade and industrial investment.

If completed as planned, the facility would position Kenya at the centre of a new regional petroleum supply network while placing the management of land, environmental and community concerns alongside the project’s wider economic ambitions.