Africa's richest man, Aliko Dangote, has broken ground on a $16 billion refinery in Lamu, Kenya, marking his largest investment outside Nigeria. The refinery, expected to cost between $16 billion and $17 billion, will have a processing capacity of 700,000 barrels of crude oil per day and is targeted for completion by 2030. Dangote's industrial empire spans cement, oil refining, fertiliser, sugar, salt, and logistics across more than 12 African countries.
Dangote's business empire is led by Dangote Industries Limited, a holding company with operating subsidiaries in various sectors. Dangote Cement Plc is the group's most widely recognised asset and the largest cement producer on the African continent, with an installed capacity of 51.8 million metric tonnes per year. The company has operations in Cameroon, Ghana, South Africa, the Republic of Congo, Senegal, Tanzania, Ethiopia, Sierra Leone, Zambia, Côte d'Ivoire, and Zimbabwe.
The Dangote Petroleum Refinery and Petrochemicals FZE, located in the Lekki Free Zone near Lagos, is the world's largest single-train refinery, processing 650,000 barrels of crude oil per day at a construction cost exceeding $20 billion. Dangote Fertiliser Limited operates a $2.5 billion plant in Lagos producing three million tonnes of urea annually. Dangote Sugar Refinery Plc dominates Nigeria's sugar industry, supplying manufacturers, breweries, and confectionery companies.
Dangote's exposure to Kenya extends into hospitality and food. In January 2025, Alterra Capital Partners, a private equity firm whose investor base includes Dangote and US billionaire David Rubenstein, acquired a majority stake in Java House Africa. At the time, Java House Africa operated more than 70 outlets across Kenya, Uganda, and Rwanda. In May 2025, Africa Travel Investments, backed by Alterra Capital, completed the acquisition of 100% of Pollman's Tours and Safaris, one of Kenya's oldest tour operators.
The Lamu refinery is expected to create up to 60,000 direct jobs during peak construction and will prioritise developing local technical skills. Dangote has pledged employment opportunities for holders of engineering degrees, diplomas, and technical qualifications. However, the project faces a legal challenge from 133 residents over ancestral land claims, with the Malindi Environment and Land Court ordering parties to maintain the status quo on the disputed land ahead of a hearing on October 14, 2026.
Dangote launched an initial public offering for the Dangote Oil Refinery, offering 4.1 billion ordinary shares at 525 naira each. This is expected to become Africa's largest share sale, targeting up to $2.1 billion. The refinery, being developed along the LAPSSET corridor, will have a significant impact on the region's economy and infrastructure.
Lamu residents have called for at least 70% of jobs to go to locals and for youth training programmes to be established. With the project's completion targeted for 2030, it is expected to have a lasting impact on Kenya's economy and energy sector. Key sectors of Dangote's business empire include cement, oil refining, fertiliser, sugar, salt, and logistics.
Key points
- Aliko Dangote breaks ground on $16 billion Lamu refinery in Kenya.
- Dangote's business empire spans across 12 African countries.
- The Lamu refinery is expected to create up to 60,000 direct jobs during peak construction.
