The Dangote East Africa Petroleum Refinery, located in Mokowe, Lamu County, Kenya, was launched on September 30, 2026, by Ethiopian Prime Minister Abiy Ahmed. The $16 billion project is designed to handle up to 700,000 barrels of crude oil daily and is expected to be completed by 2030. Once operational, the refinery will supply refined petroleum products to Kenya and other East African markets. The project aims to change the regional pattern of relying on imported fuel, which leaves economies exposed to global market shocks.

Prime Minister Abiy Ahmed emphasized that the refinery could help widen the region's access to petroleum products while creating opportunities for business activity. He noted that the project would bring refining closer to African markets, adding significant capacity to the continent. The refinery's location within the Lamu Port-South Sudan-Ethiopia Transport corridor (LAPSSET) is expected to encourage the establishment of businesses involved in transport, logistics, and manufacturing. This strategic positioning will support the movement of goods and economic activity across the region.

The Kenyan government expects the refinery and industrial development to generate over 60,000 jobs, including positions requiring specialized skills. Abiy Ahmed praised Aliko Dangote, President of Dangote Group, for bringing his experience in large-scale industrial ventures to the Lamu project. He also recognized President William Ruto's backing of the investment, highlighting its importance beyond Kenya's borders. The Ethiopian Prime Minister expressed his country's interest in the project, stating that an additional regional source will broaden Ethiopia's supply options and create new opportunities for trade and investment.

Abiy Ahmed called on young Africans to prepare for the technical and business opportunities that major industrial projects like the Lamu refinery can create. He encouraged them to become engineers, technicians, entrepreneurs, and leaders, ensuring that projects of this scale leave a lasting legacy. The Prime Minister emphasized that East Africa is not only a market but also a place to produce, build, and create value. He stressed the importance of using such investments to build local industries, increase production, and keep more value within Africa.

The Dangote Lamu refinery is expected to have a significant impact on Kenya's fuel supply, as the country imported 5.5 million tonnes of petroleum products in 2025, an increase of 12.2%. Domestic consumption also climbed by 9.9% to 5.7 million tonnes, while the country's petroleum import bill reached Sh528.8 billion. The refinery's construction phase has begun, with its progress tied to factors including financing, supporting infrastructure, access to crude, demand from regional markets, and the development of industries around the refinery.

Prime Minister Abiy Ahmed's visit to the launch event was attended by several high-profile guests, including Uganda President Yoweri Museveni, President William Ruto, and Aliko Dangote. The event marked a significant milestone in the development of the Lamu refinery, which is expected to become the largest refinery in East Africa upon completion. Abiy Ahmed's remarks highlighted the importance of cooperation between governments, private companies, and countries in the region to increase Africa's capacity to produce goods locally.

The Lamu refinery project is part of Dangote Group's plans to invest Sh6.5 trillion in Africa by 2030. The project's success will depend on various factors, including the availability of crude oil, demand from regional markets, and the development of supporting infrastructure. Nevertheless, the Dangote Lamu refinery is poised to have a significant impact on the region's fuel supply and economic growth, creating new opportunities for trade, investment, and industrial development.

Key points

  • The Dangote Lamu refinery aims to change the regional pattern of relying on imported fuel, which leaves economies exposed to global market shocks.
  • The project is expected to generate over 60,000 jobs, including positions requiring specialized skills.
  • The refinery's location within the LAPSSET corridor is expected to encourage the establishment of businesses involved in transport, logistics, and manufacturing.

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SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.