The Lower Eastern Times Opening The Third Eye
Africa’s richest man, Aliko Dangote, has revealed that construction of the proposed Lamu oil refinery is set to begin by October this year, while also disclosing that the project’s estimated cost has been revised down by Ksh2 billion.
Speaking to the BBC, Dangote said the refinery would serve both Kenya and other countries across East Africa, with the project expected to take under four years to complete once ground is broken. He noted that plans for the refinery have progressed significantly, describing the effort as part of a broader push to help African countries become more self-sufficient in meeting their own energy needs.
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According to Dangote, preparations for construction are now at an advanced stage, with a groundbreaking ceremony expected no later than October, marking the official start of construction on the massive facility.
The proposed refinery is designed to process 700,000 barrels of crude oil per day, positioning it as one of the largest planned oil-processing facilities on the continent and a significant boost to Kenya’s petroleum capacity.
Dangote emphasized that the refinery’s reach would extend well beyond Kenya’s borders, potentially supplying petroleum products to multiple countries across East Africa and beyond — including Egypt — rather than serving the Kenyan market alone.
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The billionaire also disclosed that the project’s projected cost had been scaled back from an earlier estimate of Ksh2.2 trillion to approximately Ksh2 trillion. He explained that initial projections had placed the cost at around $17 billion, but the figure now stands at closer to $16 billion.
He attributed the reduced cost partly to lessons learned from building his company’s refinery in Nigeria, noting that the Kenyan project is expected to move faster, resulting in lower financing costs. He added that the company’s greater experience since completing the Nigerian refinery has also contributed to the more efficient projections.
Dangote said the project will be funded through a mix of equity and debt, with the company planning to cover 30 percent of the financing through equity and raise the remaining 70 percent through debt.
Once complete, the refinery is expected to rank among the largest private-sector investments in Kenya, generating thousands of jobs across construction, engineering, logistics, manufacturing, energy, and related supporting industries.
