Africa's richest man, Aliko Dangote, has unveiled plans for his group's proposed refinery in Lamu, Kenya. The facility will produce a range of petroleum and industrial products for Kenya and the wider East African market. Dangote stated that the refinery will produce jet fuel, diesel, and petrol, as well as supply raw materials to the plastics industry and other manufacturers. The project is part of a wider investment programme that will see his group invest about $16 billion in Kenya.
The refinery will produce polypropylene, which will be supplied to plastic manufacturers, as well as base oil for industrial use. Dangote noted that the project will go beyond petroleum products, with plans to increase power generation as part of a wider industrialisation programme. He described the planned investment as the largest investment by an African investor in Africa, saying Kenya remains one of the group's most important markets outside Nigeria.
Dangote explained why his group settled on Lamu after initially considering Mombasa and Tanzania's Tanga as possible locations for the refinery. He said Lamu offered adequate water, sufficient sea depth, and enough land for the planned development. According to Dangote, the refinery could become the centre of a much larger industrial complex, with significant activity expected in the area once the project is completed.
The proposed refinery is expected to serve markets beyond Kenya, with Dangote saying the group is looking at the wider East African market for its petroleum and industrial products. He also linked the project to efforts to address Africa's power deficit, saying inadequate electricity remains one of the factors slowing industrial growth on the continent. Dangote said he was in discussions with leaders in Kenya and other African countries on ways of mobilising resources for increased power generation.
Dangote said the group plans to invest about $50 billion in industries over the next four years, including projects aimed at expanding power generation. He noted that the scale of the planned development would become clearer as the project progresses, arguing that Lamu could experience significant economic activity within four to five years. The refinery is expected to produce jet fuel, diesel, petrol, polypropylene, and base oil by 2027.
Dangote addressed the question of where the refinery would source its crude, noting that Kenya and Uganda are expected to begin producing oil, while other countries in East Africa could also become suppliers. He said the refinery would therefore have access to crude from the region as production increases. Kenya and Uganda are expected to start producing crude very soon, and other neighbouring countries in East Africa will also start producing their own crude.
The billionaire said the refinery is part of a wider investment programme that will see his group invest about $16 billion in Kenya. He described the planned investment as the largest investment that an African invests in Africa. Dangote also said that when the project is completed, Lamu will have more activities than any industrial centre in Kenya.
Key points
- The refinery will produce jet fuel, diesel, petrol, polypropylene, and base oil.
- The project is part of a wider investment programme that will see his group invest about $16 billion in Kenya.
- The refinery could become the centre of a much larger industrial complex in Lamu.
